Silicon Labs Stock Soars 51% on TI Acquisition Deal

Texas Instruments to Acquire Silicon Labs for $7.5 Billion

Texas Instruments (NASDAQ: TXN) has officially confirmed it will acquire Silicon Laboratories (NASDAQ: SLAB) in an all-cash deal valued at approximately $7.5 billion. The agreement prices Silicon Labs stock at $231.00 per share, a move aimed at creating a global leader in embedded wireless connectivity.

Market Reacts as SLAB Stock Surges

Following the announcement, Silicon Labs' stock surged 51%, building on an initial 35% jump from earlier reports. The deal, unanimously approved by both boards, combines Texas Instruments' analog and embedded processing strengths with Silicon Labs' extensive wireless portfolio, adding about 1,200 products to TXN's lineup.

Strategic Impact and Synergies

This acquisition is a key part of Texas Instruments’ long-term strategy. The company plans to bring Silicon Labs' production in-house, expecting to generate approximately $450 million in annual synergies within three years. The transaction is projected to close in the first half of 2027, pending regulatory and stockholder approvals.

Conclusion

The deal positions Texas Instruments for significant growth in the embedded wireless market. The market's strong positive reaction reflects confidence in the strategic value, though the transaction's completion remains subject to future regulatory milestones.

FAQ

Q: What is the acquisition price per share for Silicon Labs?
A: Texas Instruments will acquire Silicon Labs for $231.00 per share in an all-cash transaction.

Q: When is the acquisition expected to be completed?
A: The transaction is expected to close in the first half of 2027, subject to regulatory and shareholder approvals.

Source: Investing.com