Texas Instruments to acquire Silicon Labs to expand embedded wireless connectivity portfolio
- By Nuadox Crew -
Texas Instruments (TI) has agreed to acquire Silicon Labs in an all-cash deal valued at approximately $7.5 billion, the companies announced Feb. 4. Under the terms of the agreement, Silicon Labs shareholders will receive $231 per share.
Silicon Labs designs low-power, secure wireless chips and integrated systems used in applications such as smart home devices, industrial IoT equipment, smart cities infrastructure and other connected products. TI said combining those connectivity technologies with its analog and embedded processing portfolio and in-house manufacturing capabilities will strengthen its position in the growing embedded wireless market.
The acquisition will add roughly 1,200 wireless connectivity products to TI’s portfolio and allow the company to shift Silicon Labs’ production from external foundries to its own manufacturing network, which it says will improve supply reliability and reduce costs. TI expects the transaction to generate about $450 million in annual manufacturing and operational synergies within three years of closing.
The companies also cited expanded customer reach, cross-selling opportunities and greater scale as strategic benefits. TI plans to fund the acquisition through a mix of cash on hand and debt financing.
The deal has been unanimously approved by both boards and is expected to close in the first half of 2027, subject to regulatory and shareholder approvals.
Read more at Texas Instruments
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