Texas Instruments to buy Silicon Labs in USD7.5b deal
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The news: US semiconductor manufacturer Texas Instruments has struck a deal to acquire chip designer Silicon Labs, broadening its exposure to chip markets across the home appliance, power, industrial and medical-device sectors.
The numbers: Texas Instruments will acquire Silicon Labs for USD231 ($328.76) per share in an all-cash transactions, at a valuation of USD7.5 billion, including debt, according to a joint statement from the companies.
Shares in Silicon Labs surged on the news, gaining over 50% by 9:28am ET Wednesday (1:28am AEDT Thursday).
The context: In contract with AI chip companies Nvidia and AMD, Texas Instruments focuses on foundational chips across everyday appliances and devices, giving it a broad client base.
The companies said that the acquisition will create a global leader in embedded wireless connectivity solutions by combining Silicon Labs' strong portfolio and expertise in mixed signal solutions with Texas Instruments' leading analogue and embedded processing portfolio and internally owned technology and manufacturing capabilities.
The transaction is expected to close in the first half of 2027, subject to regulatory approvals.
The FT reported that the two companies were in advanced talks on Tuesday.
The transaction is the largest acquisition by Texas Instruments since its USD6.5 billion takeover of National Semiconductor in 2011. In 2024, activist investor Elliott Investment Management disclosed a USD2.5 billion ($3.75 billion) stake in the company, pushing for increased cash for shareholder distributions.
Goldman Sachs is serving as financial advisor to Texas Instruments, A&O Shearman is serving as legal counsel and Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor.
Qatalyst Partners is serving as financial advisor to Silicon Labs, DLA Piper is serving as legal counsel, and FGS Global is serving as strategic communications advisor.
The sources: Texas Instruments, FT, Bloomberg, Reuters, CNBC
