Skyworks to Acquire the Infrastructure & Automotive Business of Silicon Labs
April 23, 2021 | Business WireEstimated reading time: 2 minutes
Skyworks Solutions, Inc., an innovator of high-performance analog semiconductors connecting people, places and things, announced that it has entered into a definitive agreement with Silicon Laboratories Inc., a leading provider of silicon, software and solutions for a smarter, more connected world, under which Skyworks will acquire the Infrastructure & Automotive business of Silicon Labs in an all-cash asset transaction valued at $2.75 billion.
Over the past two decades, Silicon Labs has developed the Infrastructure & Automotive business into a leader in each of its target markets, providing best-in-class solutions to a highly diversified customer base. The acquisition encompasses the technology portfolios and related assets of Silicon Labs’ power/isolation, timing and broadcast product lines, which are highly complementary to Skyworks’ connectivity portfolio.
The acquisition will accelerate Skyworks’ expansion into the industry’s most important growth segments, including electric and hybrid vehicles, industrial and motor control, power supply, 5G wireless infrastructure, optical data communication, data center, automotive, smart home and several other applications. Skyworks will be uniquely positioned to address a combined market opportunity approaching $20 billion annually.
Mark Thompson, senior vice president of Silicon Labs and general manager of the Infrastructure & Automotive business, will join Skyworks as part of the transaction, reporting directly to Liam K. Griffin, president and chief executive officer of Skyworks. In addition, approximately 350 employees, including the senior management team of the business, are expected to join Skyworks upon completion of the transaction.
“We are pleased to welcome the Infrastructure & Automotive team to Skyworks when this transaction is completed,” said Mr. Griffin. “This acquisition will broadly expand our capabilities across high-growth end markets including automotive, communications and industrial, creating new and highly compelling opportunities for Skyworks. By leveraging our global sales channels, operational scale and deep customer relationships, Skyworks is well positioned to drive above-market growth, while diversifying revenues, expanding margins and delivering strong returns in earnings and cash generation.”
“With our companies’ shared cultures of design excellence and customer collaboration, I am confident that the Infrastructure & Automotive team will continue their decades-long history of delivering industry-leading innovations,” said Silicon Labs CEO Tyson Tuttle. “Silicon Labs and Skyworks will partner to ensure a seamless transition for customers, suppliers and employees.”
Skyworks expects the transaction to be immediately accretive and to accelerate the path to Skyworks achieving its target financial model. The transaction, which is expected to close during the third calendar quarter of 2021, has been approved by the boards of directors of both companies and is subject to customary closing conditions, including regulatory approvals.
Skyworks expects to fund the transaction with a combination of cash on hand and committed debt financing arranged by J.P. Morgan.
Suggested Items
Record Numbers of Exhibitors to Showcase Products and Services at EWPTE 2024
04/25/2024 | IPCWHMA/IPC announces that 215 exhibitors spanning over 50,000 nsf of exhibit space will introduce new product technologies, innovations and demonstrations of the electrical wire harness, wire, coil winding and cable processing industries’ newest advancements at Electrical Wire Processing Technology Expo (EWPTE) to be held at Baird Center May 14-16, 2024, in Milwaukee, Wis. This marks the largest number of exhibiting companies in the event’s history. More than 3,000 attendees are expected to attend this year’s event.
Orbex Secures £16.7m Investment for Rocket ‘Ramp Up’ Period
04/24/2024 | OrbexThe UK spaceflight company Orbex has received £16.7m from six backers in an update to its Series C funding round.
Robin Hayes Selected to Lead Airbus in North America
04/23/2024 | AirbusAirbus SE has announced that C. Jeffrey Knittel is retiring as Chairman and Chief Executive Officer of Airbus Americas, Inc. effective June 3, 2024, after serving as the region’s top executive since 2018. He will remain with Airbus through a transition period. Robin Hayes, former CEO of JetBlue Airways, has been selected to succeed him.
Zentech’s Board of Directors Announces the Return of Matt Turpin as President and CEO
04/22/2024 | Zentech ManufacturingTurpin draws upon over 35 years of experience in the electronics industry and has an 18-year history with Zentech. He previously served as President and CEO from 2006 to 2019 after which time he has remained active in the EMS industry as an advisor to Zentech and other industry organizations.
Altair Acquires Cambridge Semantics, Powering Next-Generation Enterprise Data Fabrics and Generative AI
04/22/2024 | AltairAltair a global leader in computational intelligence, acquired Cambridge Semantics, a modern data fabric provider and creator of one of the industry’s leading analytical graph databases.