Texas Instruments to acquire Silicon Labs

Texas Instruments has agreed to acquire Silicon Labs for 231 dollars per share in an all cash transaction. The agreement values Silicon Labs at an enterprise value of approximately 7.5 billion dollars. Both company boards have approved the deal. The transaction is expected to close in the first half of 2027 subject to regulatory approvals and other customary conditions including approval The acquisition combines Silicon Labs expertise in secure intelligent wireless technology with Texas Instruments analog and embedded processing chips. It is expected to generate approximately 450 million dollars of annual manufacturing and operational synergies within three years after the close. Texas Instruments chairman president and chief executive officer Haviv Ilan said the acquisition strengthens the company's embedded processing strategy and enables greater scale. Silicon Labs president and chief executive officer Matt Johnson said the combination positions the companies to serve more customers and accelerate innovation. Texas Instruments will fund the transaction with cash on hand and debt financing arranged prior to closing. The transaction is expected to be accretive to Texas Instruments earnings per share excluding transaction related costs in the first full year after closing.