The transaction brings together Texas Instruments’ manufacturing scale and Silicon Labs’ embedded wireless connectivity portfolio.
Texas Instruments (Nasdaq: TXN) and Silicon Labs (Nasdaq: SLAB) have signed a definitive agreement under which Texas Instruments will acquire Silicon Labs in an all-cash transaction, according to an announcement.
Under the terms of the agreement, Silicon Labs stockholders will receive $231 in cash for each share they hold at the time of closing, representing a total enterprise value of approximately $7.5 billion. The transaction has been unanimously approved by the boards of both companies and is expected to close in the first half of 2027, subject to regulatory and stockholder approvals and other customary closing conditions.
The acquisition will combine Silicon Labs’ portfolio and expertise in mixed-signal solutions with Texas Instruments’ analog and embedded processing portfolio and internally owned technology and manufacturing capabilities. The companies said the combined business will accelerate growth by expanding innovation and market access to existing and new customers.
Haviv Ilan, Chairman, President and CEO of Texas Instruments, described the acquisition as strengthening the company’s long-term embedded processing strategy. “Silicon Labs’ leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale and allowing us to better serve our customers,” Ilan stated. “Texas Instruments’ industry-leading and internally owned technology and manufacturing is optimized for Silicon Labs’ portfolio, and will provide customers dependable supply worldwide.”
Matt Johnson, President and CEO of Silicon Labs, said both companies share a strong Texas heritage and a long-term commitment to building technology companies. “By combining our embedded wireless connectivity portfolio with Texas Instruments’ scale, technology and manufacturing capabilities, we will be positioned to serve more customers and accelerate innovation,” he added.
According to the announcement, the acquisition is expected to enhance global leadership in embedded wireless connectivity solutions, leverage Texas Instruments’ manufacturing capacity to better serve customers and deepen customer engagement through expanded market channels and cross-sell opportunities. The transaction is also projected to generate approximately $450 million in annual manufacturing and operational synergies within three years of closing.