Texas Instruments and Silicon Labs announced that they have entered into a definitive agreement for Texas Instruments to acquire Silicon Labs in an all-cash transaction valued at approximately $7.5 billion in enterprise value.
Under the terms of the agreement, Silicon Labs stockholders will receive $231.00 per share in cash for each share of common stock held at closing. The transaction has been unanimously approved by the boards of directors of both companies.
The deal positions the combined company as a provider of embedded wireless connectivity solutions through the integration of Silicon Labs' portfolio in secure, intelligent wireless technology and mixed-signal solutions with Texas Instruments' analog and embedded processing chips, along with its internal manufacturing capabilities.
The acquisition adds roughly 1,200 products from Silicon Labs that support various wireless connectivity standards and protocols. It also involves shifting Silicon Labs' manufacturing from external foundries to Texas Instruments' internal facilities, including 300mm wafer fabs in the U.S. and internal assembly and test operations. Texas Instruments' process technologies, such as 28nm, are described as aligned with Silicon Labs' wireless portfolio.
Texas Instruments stated that the move will leverage its manufacturing capacity to provide dependable, low-cost supply at scale. It also expects to deepen customer relationships through its direct sales channels, experienced sales force, website, and e-commerce platform, creating cross-sell opportunities with the combined product offerings.
Haviv Ilan, chairman, president, and CEO of Texas Instruments, noted that the acquisition strengthens the company's embedded processing strategy by adding Silicon Labs' wireless connectivity portfolio and enabling greater scale. He highlighted the compatibility of Texas Instruments' manufacturing with Silicon Labs' products and the shared focus on engineering and innovation between the teams.
Matt Johnson, president and CEO of Silicon Labs, pointed to the companies' Texas roots and long-term approach to technology development. He referenced Silicon Labs' approximately 15% compound annual revenue growth since 2014, driven by demand for connected devices, and stated that combining with Texas Instruments' scale would allow broader customer service and faster innovation.
