Texas Instruments (TI) yesterday announced plans to acquire Silicon Labs in a deal worth some $7.5 billion.
The global chipmaker will buy the wireless technology company in an all-cash transaction for $231 per share.
The acquisition will combine Silicon Labs' portfolio of mixed-signal solutions with TI's analog and embedded processing portfolio and manufacturing capabilities.
Haviv Ilan, chairman, president and CEO of TI, said the deal will strengthen his company's long-term embedded processing strategy, enhancing IP and enabling greater scale.
The transaction will add approximately 1,200 wireless products to TI's portfolio. The plan is to leverage TI's capacity to reshore Silicon's manufacturing. TI's manufacturing footprint includes 300mm wafer fab facilities in the U.S., as well as internal assembly and test capabilities.
TI expects to generate ~$450 million in annual manufacturing and operational synergies within three years post-close.
Under the terms of the agreement, which has been unanimously approved by the Board of Directors of both companies, Silicon Labs stockholders will receive $231.00 in cash for each share of Silicon Labs common stock they hold at the time of closing.
TI expects to fund the transaction with a combination of cash on hand and debt financing to be arranged prior to closing. The transaction is not subject to any financing contingency and is expected to close in the first half of 2027, subject to receipt of regulatory approvals and other customary closing conditions, including approval by Silicon Labs stockholders.\
