Texas Instruments acquires Silicon Labs for $7.5 billion

Texas Instruments (TI) has signed a binding agreement to acquire Silicon Labs in an all-cash deal valuing the wireless connectivity specialist at approximately $7.5 billion, or about SEK 67.3 billion. Under the agreement, Texas Instruments will pay $231.00 per share of Silicon Labs. The deal has been approved by the boards of both companies. TI states that the acquisition will strengthen its global position in embedded wireless connectivity by combining Silicon Labs' portfolio and expertise in mixed-signal and wireless technology with TI's analog and embedded processor capabilities and in-house manufacturing. The deal expands TI's product portfolio with approximately 1,200 products supporting a broad spectrum of wireless standards and protocols. A central part of the deal is the integration of Silicon Labs' manufacturing into Texas Instruments' own production network. The company plans to move Silicon Labs' production from external foundries to its own manufacturing capacity, which includes 300mm wafer fabs in the U.S. and internal assembly and test facilities. TI expects the deal to generate approximately $450 million in annual manufacturing and operational synergies within three years of the transaction's completion. The transaction is expected to be completed in the first half of 2027, subject to obtaining necessary regulatory approvals and approval from Silicon Labs' shareholders