- The Silicon Labs acquisition will bolster Texas Instruments’ portfolio, which consists of analog and embedded processing solutions.
- On the other hand, Silicon Labs offers wireless technology solutions for business and consumer applications.
- Texas Instruments' manufacturing footprint includes 300mm wafer fab facilities in the U.S., in addition to internal assembly and test capabilities.
Silicon Laboratories Inc. (SLAB) shares were up nearly 50% in Wednesday’s pre-market trade after Texas Instruments Inc. (TXN) agreed to acquire the company.
Texas Instruments said that it will acquire Silicon Labs for $231.00 per share in an all-cash transaction, representing a total enterprise value of approximately $7.5 billion.
Retail sentiment on Stocktwits around Silicon Laboratories trended in the ‘extremely bullish’ territory at the time of writing.
Meanwhile, Texas Instruments shares were down nearly 4% in Wednesday’s pre-market trade, with retail sentiment hovering in the ‘neutral’ territory.
Retail sentiment on Stocktwits around Silicon Labs trended in the ‘extremely bullish’ territory at the time of writing.
Texas Instruments shares were down nearly 4% in Wednesday’s pre-market trade, with retail sentiment hovering in the ‘neutral’ territory.
Bolstering Texas Instruments’ Portfolio
The Silicon Labs acquisition will bolster Texas Instruments’ portfolio, which consists of analog and embedded processing solutions. On the other hand, Silicon Labs offers wireless technology solutions for business and consumer applications.
“Silicon Labs' leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale and allowing us to better serve our customers,” said Texas Instruments CEO Haviv Ilan.
Texas Instruments' manufacturing footprint includes 300mm wafer fab facilities in the U.S., in addition to internal assembly and test capabilities. The company said the acquisition of Silicon Labs will add approximately 1,200 products that support a variety of wireless connectivity standards and protocols.
$450 Million In Annual Synergies
Texas Instruments stated that it expects the deal to generate about $450 million in annual manufacturing and operational synergies within three years of closing the acquisition.
The company expects to close the transaction in the first half of 2027. Silicon Labs shareholders will receive $231 for each share of the company’s common stock held by them at the time of closing.
SLAB stock is up 5% year-to-date, while TXN stock is up 30%.
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