Overview
- Texas Instruments agreed to buy Silicon Labs for $231 per share, valuing the company at $7.5 billion and representing roughly a 69% premium to its last unaffected close.
- The acquisition is intended to expand Texas Instruments’ footprint in wireless connectivity chips for industrial and consumer devices.
- The companies target completion in the first half of 2027, with about $450 million in annual manufacturing and operational savings projected within three years of closing.
- Texas Instruments plans to finance the transaction using cash on hand plus debt.
- The agreement includes a $259 million termination fee if Silicon Labs walks away and a $499 million reverse fee if Texas Instruments abandons the deal, while premarket trading saw Silicon Labs up about 51% and Texas Instruments down about 3.5%.