Divestiture strategy for competitive agility
NXP Semiconductors (NXP) drives innovation in the secure connected vehicle, end-to-end security and privacy, and smart connected solutions markets. Built on more than 60 years of combined experience and expertise, the company had 31,000 employees in more than 33 countries and posted revenue of $9.5 billion in 2016.
To grow in the highly competitive semiconductor sector, NXP wanted to focus on high-growth market segments that required High Performance Mixed Signal (HPMS) products. That meant divesting its Standard Products business, a transaction valued at $2.75B.
Accenture Strategy quickly deployed a global team of carve-out specialists to help plan and execute the divestiture over a period of just seven months.
As part of its growth strategy, NXP wanted to sell its Standard Products business, which makes components for the Discretes, Logic and Metal-Oxide Semiconductor Field-Effect Transistors (MOSFETs) markets. By doing so, NXP could focus on high-growth market segments that require HPMS products for use in everything from smart meters to connected cars.
NXP knew that divesting the Standard Products business would be an important but complex undertaking. Complicating matters was the fact that NXP was also in the process of integrating its recent merger of Freescale Semiconductor.
With Accenture Strategy’s help—and in just seven months—NXP successfully divested its Standard Products business, which was “customer facing” on Day 1 and now exists as a standalone company named Nexperia. By having Accenture Strategy manage the carve-out, NXP was able to focus on integrating its Freescale Semiconductor merger and on higher-value HPMS markets.
"Our relationship with Accenture Strategy was high impact. The team’s divesture strategy, seamless implementation and collaborative approach is a textbook example of how the power of a strong partnership can drive great outcomes for a client."
– DAN DURN, Executive Vice President and CFO, NXP
The success of the divestiture program was largely due to the collaboration between Accenture Strategy and NXP from the very start. Accenture Strategy worked as an extension of NXP’s Integration Management Office and teamed closely with NXP’s global business functions. Together, these groups: