Skyworks buys Silicon Labs business unit for $2.75 billion
Some sort of deal was expected after news leaked in February of Silicon Labs hiring financial advisors (see Silicon Labs mulls sale of analog business).
The transaction includes Silicon Labs’ power/isolation, timing and broadcast products, intellectual property and associated employees and will leave the company focused on IoT with a wireless portfolio including Bluetooth, Thread, Wi-Sun, Wi-Fi, Zigbee and Z-Wave.
Skyworks said the acquisition of infrastructure and automotive product lines would accelerate Skyworks expansion into growth segments such as electric and hybrid vehicles, industrial and motor control, power supply, 5G and many others.
Meanwhile Silicon Labs is focusing down on IoT where it believes it can achieve annual growth ahead of the market average and approaching 20 percent per annum.
Mark Thompson, senior vice president of Silicon Labs and general manager of the Infrastructure and Automotive business, will join Skyworks as part of the transaction, reporting directly to Skyworks’ CEO, Liam Griffin. In addition, approximately 350 employees, including the senior management team of the business, are expected to join Skyworks upon completion of the transaction.
The transaction, which is expected to close during 3Q21, has been approved by the boards of directors of both companies and is subject to customary closing conditions, including regulatory approvals. Silicon Labs said it does not believe the transaction will require regulatory approval in China.
Silicon Labs expects to receive an estimated $2.3 billion in net proceeds after taxes and transaction fees. The company intends to return approximately $2.0 billion to shareholders through a combination of special dividends and/or share repurchases after the transaction closes.
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