Texas Instruments Inc (NASDAQ:TXN) announced that it has agreed to acquire Silicon Laboratories (NASDAQ:SLAB) in an all-cash transaction valued at about $7.5 billion, expanding its presence in embedded wireless connectivity chips.
Under the agreement, Silicon Labs shareholders will receive $231 per share in cash.
Texas Instruments plans to fund the transaction with a mix of cash and debt and said it is not subject to a financing condition.
The acquisition will combine Silicon Labs’ wireless connectivity portfolio with Texas Instruments’ analog and embedded processing products, adding roughly 1,200 wireless products to its lineup.
Texas Instruments said it plans to bring Silicon Labs’ manufacturing in-house, leveraging its US-based wafer fabs and internal assembly and test operations to improve supply reliability and reduce costs.
The company expects about $450 million in annual manufacturing and operational synergies within three years of closing and said the deal should be accretive to earnings in the first full year after closing, excluding transaction-related costs.
The deal is expected to close in the first half of 2027, subject to regulatory and shareholder approvals.
Shares of Texas Instruments fell 1% to $233, while shares of Silicon Laboratories surged almost 49% to $203, on the update.