Updated with comments from Qualcomm's CEO and analysis from Jack Mohr, research director of Action Alerts PLUS.

Semiconductor maker Qualcomm (QCOM) - Get Report ended days of speculation by confirming it had struck a $47 billion deal to buy NXP Semiconductors (NXPI) - Get Report.

The San Diego buyer will, in line with recent reports, offer $110 a share for NXP, which is based in Eindhoven, the Netherlands. That is 11.5% more than NXP's $98.66 closing price on Nasdaq on Wednesday.

"We think [the deal is] going to be significantly accretive, and we think so it right away," said Qualcomm CEO Steve Mollenkopf in an interview on CNBC on Thursday morning. 

NXP shares were up 1.7% to $100.30 in morning trading on Thursday, while Qualcomm shares rose 3.3% to $70.43.

NXP is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys of sells NXPI? Learn more now.

NXP has been a holding in Action Alerts PLUS since the beginning of this year and the company is the trust's No. 1 ranked stock within its value index. AAP has held a "Buy" (One) rating and $110 price target since initiation.

"We are excited to see the formerly under-the-radar company acquired for $110 in cash, 38% above our cost basis, validating the company's leadership across autos and ability to deliver products which provide the elusive ability to offer connectivity and security," said Jack Mohr, research director for Action Alerts PLUS.

Qualcomm said the purchase will give it a leader in high-performance, mid-signal semiconductors and expand its automotive, security and "Internet of Things" ranges.

"The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale," said Mollenkopf in a statement.

Of the pricing of the deal and the fact that it's all in cash, Mollekopf said on CNBC that "I think it's a fair deal for shareholders of both companies, and obviously both boards have looked at this and agree." 

The combined company is expected to have annual revenue of more than $30 billion and serve markets that will be worth $138 billion in 2020, the companies said.

Qualcomm said the deal will boost its non-GAAP earnings per share immediately on completion of the takeover, and will allow it to generate $500 million of annualized run-rate cost synergies within two years after the transaction closes.

Qualcomm will finance the purchase with offshore cash and new debt and said the structure of the deal provides for a "tax efficient use of offshore cash flow" that will allow it to cut debt rapidly.

NXP, led by CEO Rick Clemmer, on Wednesday said third-quarter revenue rose 62% to $2.47 billion, as non-GAAP operating profit rose to $691 million from $449 million a year earlier.

NXP shareholders need to approve the deal.

Completion is expected by the end of next year. When asked about the length of time needed to get regulatory approval for the deal, Mollenkopf said on CNBC that "I don't think it's anything unusual in the process."