TEXAS — Texas Instruments has agreed to acquire Austin-based Silicon Laboratories for a cash transaction that is expected to be worth $7.5 billion, according to a joint press release from both companies.
The transaction, which will see Silicon Labs shareholders receive a $231 per share buyout, is expected to close in 2027, subject to regulatory approval.
Silicon Labs’ embedded wireless connectivity solutions were attractive to Texas Instruments and will allow the company to pair their analog and embedded processing and manufacturing to make a more competitive portfolio, according to the release.
“Texas Instruments and Silicon Labs share a strong Texas heritage and a long-term commitment to building technology companies the right way,” said Matt Johnson, president and CEO of Silicon Labs, in the release. “Over the last decade, Silicon Labs has delivered double-digit growth, driven by the accelerating demand for more connected devices.”
“Together, we can do more,” added Haviv Ilan, chairman, president and chief executive officer of Texas Instruments. “The Texas Instruments and Silicon Labs teams share a high-performing culture focused on excellence, engineering and innovation, and I am highly confident this transaction positions the combined company to deliver sustained value creation for Texas Instruments’ shareholders.”
Johnson said the acquisition will be beneficial to both Texas Instruments and Silicon Labs.
“By combining our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we will be positioned to serve more customers and accelerate innovation,” Johnson said.