Texas Instruments (TXN) has signed a definitive agreement to acquire Silicon Labs (SLAB) for $231.00 per share in an all-cash transaction, representing a total enterprise value of around $7.5B.
SLAB shares jumped nearly 26% premarket following the announcement, while TXN fell 3.4%.
The transaction 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.
Texas Instruments 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.
The deal will be accretive to Texas Instruments’ earnings per share, excluding transaction-related costs, in the first full year post-close and is estimated to generate ~$450M in annual manufacturing and operational synergies within three years post-close.
“The acquisition of Silicon Labs is a significant milestone that strengthens our long-term embedded processing strategy. Silicon Labs’ leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale and allowing us to better serve our customers. Texas Instruments’ industry-leading and internally owned technology and manufacturing is optimized for Silicon Labs’ portfolio, and will provide customers dependable supply worldwide,” said Haviv Ilan, chairman, president and chief executive officer of Texas Instruments.
Source: Press Release