TLDR:
- TXN to buy Silicon Labs for $7.5B and target $450M in annual synergies
- Texas Instruments expands wireless reach with $231 per share deal
- TXN strengthens embedded strategy through major Silicon Labs buy
- $7.5B Silicon Labs acquisition boosts TXN wireless portfolio scale
- Texas Instruments targets growth with large wireless acquisition
Texas Instruments (TXN) stocks trades at $220.15, down 2.25%, after sliding from a late-morning spike and holding near intraday lows. The stock implied $231 per share transaction value as the acquisition targets long-term embedded growth. The all-cash agreement adds scale and signals a deeper push into connected device markets.
Texas Instruments Incorporated, TXN
Acquisition expands embedded wireless platform
Texas Instruments signed a definitive agreement to acquire Silicon Labs in an all-cash transaction. The deal values Silicon Labs at about $231 per share and totals roughly $7.5 billion. The companies expect closing in the first half of 2027 after regulatory and shareholder approvals.
The transaction combines Silicon Labs’ wireless portfolio with Texas Instruments’ analog and embedded processing strength. The merged platform targets leadership in embedded wireless connectivity across industrial and smart device markets. Management expects faster innovation and broader customer reach after integration.
The acquisition adds about 1,200 wireless products that support multiple global connectivity standards. Texas Instruments plans to align these products with its internal manufacturing capacity and technology stack. The companies position the combination as a scaled solution for future connected ecosystems.
Manufacturing scale targets operational synergies
Texas Instruments intends to shift Silicon Labs production toward its internal manufacturing network. The company operates 300mm wafer facilities in the United States and maintains in-house assembly capacity. This structure supports lower cost output and tighter supply control.
The integration plan aims to generate about $450 million in annual manufacturing and operational synergies. Management expects these gains within three years after closing. The strategy focuses on process efficiency and streamlined production cycles.
Texas Instruments states that its defined process technologies align with Silicon Labs’ wireless design needs. This alignment supports faster design transitions and predictable output quality. The manufacturing shift also reduces reliance on external foundries.
Financial structure supports long-term growth
Texas Instruments plans to fund the acquisition with cash and new debt financing. The agreement includes no financing contingency and received unanimous board approval from both companies. Silicon Labs shareholders will receive cash at closing under the final terms.
Management expects the deal to add to earnings per share in the first full year after closing. The company excludes transaction costs when projecting early accretion. Texas Instruments also maintains its capital return framework tied to free cash flow.
The companies frame the acquisition as a long-term expansion of embedded capabilities. Silicon Labs has reported sustained growth tied to rising connected device demand. Texas Instruments positions the merger as a platform for continued scale and product depth.
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