Silicon Laboratories (SLAB) soared 37% in after-hours trading on a report that Texas Instruments (TXN) is in talks to buy the chip designer for about $7 billion. Texas Instruments fell 2.5%.
Talks between the companies are at an advanced stage and a deal could come together in the coming days, according to a Financial Times report on Tuesday, which cited people familiar with the matter.
The exact terms of the deal weren’t immediately known, and it’s possible the timeline could slip or the discussions could fall apart, according to the report.
Texas Instruments and Silicon Labs didn’t immediately respond to the FT’s requests for comment.
Silicon Labs (SLAB) is set to report Q4 results next Tuesday.