Texas Instruments Acquires Silicon Labs for $7.5B

By Chris Stiles • Wednesday, February 04 11:46 • Permanent Link

Texas Instruments (NASDAQ: TXN) has announced its acquisition of Silicon Labs (NASDAQ: SLAB) in a deal valued at approximately $7.5 billion. The acquisition is expected to enhance Texas Instruments’ global leadership in embedded wireless connectivity solutions and leverage its industry-leading, low-cost manufacturing capacity. The deal is anticipated to generate approximately $450 million in annual manufacturing and operational synergies within three years post-close.

The acquisition is expected to broaden Texas Instruments’ portfolio with the addition of approximately 1,200 products supporting various wireless connectivity standards and protocols. Additionally, the transaction is expected to deepen customer engagement through the reach of market channels and cross-sell opportunities.

The transaction is expected to be funded with a combination of cash on hand and debt financing and is anticipated to be accretive to Texas Instruments’ earnings per share, excluding transaction-related costs, in the first full year post-close.

Silicon Labs, a leader in low-power connectivity, is expected to file a proxy statement with the Securities and Exchange Commission for the proposed transaction. The transaction is subject to receipt of regulatory approvals and other customary closing conditions, including approval by Silicon Labs stockholders, and is expected to close in the first half of 2027.

Texas Instruments remains committed to its capital return strategy to return 100% of free cash flow to shareholders over time via dividends and share repurchases.

Goldman Sachs & Co. LLC is serving as the exclusive financial advisor to Texas Instruments, while Qatalyst Partners is serving as the exclusive financial advisor to Silicon Labs.

The acquisition is seen as a significant milestone that strengthens Texas Instruments’ long-term embedded processing strategy and enhances its technology and IP, enabling greater scale and better customer service. The market has reacted to these announcements by moving the company's shares 1.3% to a price of $191.58. Check out the company's full 8-K submission here.

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