Silicon Labs (NASDAQ: SLAB) has reported a definitive asset purchase agreement to sell its Infrastructure & Automotive business to Skyworks Solutions, Inc. (NASDAQ: SWKS) for USD 2.75 Billion in cash. The transaction will include the company’s power/isolation, intellectual property, timing and broadcast products and associated employees. Silicon plans to received USD 2.3 Billion of the net proceeds after taxes and transaction fees.
“The outcome of this deal is a measurable testament to the industry-leading solutions and strong financial performance the world-class infrastructure and automotive team delivered the last 25 years,” said Silicon Labs CEO Tyson Tuttle. Boards of both companies have approved the transaction as it is expected to close within the third quarter of 2021.
“The massive growth in connected devices makes this the right time for us to exclusively focus on the large, diverse, growing IoT opportunity,” said Silicon Labs CFO John Hollister. “Our updated operating model for the IoT business indicates a long-term revenue growth rate of 20 percent, outpacing the forecasted industry CAGR of mid-teens for our combined target IoT end markets of Industrial & Commercial and Home & Life.”
“We’re more than a semiconductor company – our hardware, software, tools and partnerships are designed to help IoT businesses get to market quickly with the world’s most secure, intelligent, energy-efficient edge devices,” said Silicon Labs president, Matt Johnson. “Focusing efforts and resources on IoT enables Silicon Labs to gain valuable operating efficiencies and ROI. Our team will develop advanced innovations faster and provide a superior user experience no matter the customer’s wireless protocol, ecosystem, application or embedded expertise level.”