Smartphone chipmaker Qualcomm has officially announced it is buying NXP Semiconductors N.V. in a deal valued at approximately $38 billion. NXP shareholders will receive $110 per share for each share they own. That's an 11.5 percent premium to the company's Wednesday closing price of $98.66. The companies put the deal's total value at about $47 billion.

The combined company is expected to have annual revenues of more than $30 billion.

The boards of both companies approved the transaction, which is targeted to close by the end of 2017.

Following the acquisition, Qualcomm, already a leader in mobile SoCs, 3G/4G modems and security, will expand its footprint across key growth opportunities -- automotive, Internet of Things, security and networking.

NXP is a leader in high-performance, mixed-signal semiconductor electronics, with products and solutions such as broad-based microcontrollers, secure identification, network processing and RF power.

As a leading semiconductor solutions supplier to the automotive industry, NXP also has leading positions in automotive infotainment, networking and safety systems, with solutions designed into 14 of the top 15 infotainment customers in 2016. NXP has also a broad customer base, serving more than 25,000 customers through its direct sales channel and global network of distribution channel partners.