Skyworks Solutions has reached a definitive agreement with Silicon Laboratories to acquire the infrastructure and automotive business of Silicon Labs, in an all-cash asset transaction valued at $2.75 billion. The deal is expected to close during the third calendar quarter of 2021.
Skyworks will acquire the technology portfolios and related assets of Silicon Labs’ power/isolation, timing and broadcast product lines, which complement Skyworks’ connectivity portfolio. The acquisition will accelerate Skyworks’ expansion into electric and hybrid vehicles, industrial and motor control, power supply, 5G wireless infrastructure, optical data communication, data center, automotive and smart home applications — a combined market opportunity approaching $20 billion annually, according to Skyworks.
“This acquisition will broadly expand our capabilities across high-growth end markets including automotive, communications and industrial, creating new and highly compelling opportunities for Skyworks,” said Liam Griffin, president and chief executive officer of Skyworks.
Mark Thompson, senior vice president of Silicon Labs and general manager of its infrastructure and automotive business, will join Skyworks and report directly to Griffin. Skyworks plans to add approximately 350 employees from the business, including the senior management team of the business, once the transaction is complete.
“We are pleased to welcome the Infrastructure & Automotive team to Skyworks when this transaction is completed.” said Griffin.
Skyworks said the transaction will be immediately accretive and accelerate the company's plan to reach its target financial model.
The transaction has been approved by the boards of directors of both companies and is subject to customary closing conditions, including regulatory approvals. Skyworks plans to fund the transaction with a combination of cash and committed debt financing arranged by J.P. Morgan.