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Texas Instruments to Acquire Silicon Labs for $7.5 Billion in All-Cash Deal

The purchase brings embedded wireless connectivity into TI's portfolio with closing targeted in early 2027 pending approvals.

Overview

  • TI will pay $231 per share in cash, valuing Silicon Labs at about $7.5 billion and representing roughly a 69% premium to the last unaffected price.
  • The acquisition adds Silicon Labs’ low-power wireless technologies such as Bluetooth, Wi‑Fi and Zigbee to TI’s analog and embedded lineup for industrial and IoT applications.
  • TI projects roughly $450 million in annual manufacturing and operational savings within three years, aided by shifting Silicon Labs’ production to TI’s own fabs.
  • The companies aim to close in the first half of 2027 subject to regulatory and shareholder approvals, with breakup fees of $259 million for Silicon Labs and $499 million for TI.
  • TI plans to fund the purchase with cash and debt in its largest deal since 2011, as Silicon Labs shares surged about 48%–51% and TI slipped a few percent on the news.