Texas Instruments to Buy Silicon Labs for $7.5 Billion

Texas Instruments agreed to acquire Silicon Laboratories in an all-cash deal valued at $7.5 billion, a move announced on February 4 that sent shares of the smaller chipmaker surging while pressuring the acquirer's stock.

The transaction, priced at $231 per share, represents a premium of about 69 percent over Silicon Labs' unaffected closing price the previous day. Silicon Labs shares climbed 48 percent to $112.50 by midmorning trading in New York, though they remained well below the offer price. Texas Instruments shares fell 3.5 percent in response. The deal, which both companies' boards have unanimously approved, is expected to close in the first half of 2027, pending regulatory clearances and Silicon Labs shareholder approval.

The acquisition bolsters Texas Instruments' presence in embedded wireless connectivity solutions, key components for industrial, automotive, and Internet of Things applications. Texas Instruments, a leader in analog chips that handle signal processing and power management in electronic devices, will integrate Silicon Labs' expertise in low-power systems-on-chips for connected products like smart home devices, power meters, and industrial sensors. This...