Texas Instruments Seals the Deal: Acquires Silicon Labs for a Whopping $7.5 Billion
Texas Instruments, in a landmark move, has announced a definitive agreement to acquire Austin-based chip designer Silicon Laboratories for a staggering $7.5 billion. This all-cash transaction marks the company’s largest acquisition since 2011.
The terms of the deal, announced on February 4, 2026, dictate that Silicon Labs shareholders will receive $231.00 per share in cash. This represents a premium of approximately 69% to the stock’s closing price before deal talks were reported. This strategic acquisition will bolster Texas Instruments’ position in the realm of embedded wireless connectivity. It brings together Silicon Labs’ expertise in mixed signal solutions with TI’s prowess in analog and embedded processing capabilities.
The transaction is slated to close in the first half of 2027, subject to regulatory approvals and the green light from Silicon Labs stockholders. Texas Instruments plans to finance the acquisition through a combination of cash on hand and debt financing. The deal is projected to generate approximately $450 million in annual manufacturing and operational savings within three years of closing. Moreover, it is expected to be accretive to earnings per share in the first full year post-close.
For Texas Instruments, a company whose core strength lies in analog chips that manage signals and power in electronic equipment, this acquisition expands its footprint in the domain of wireless connectivity chips. These chips are extensively used for industrial and consumer applications. The combined company will be better equipped to serve customers in sectors including home appliances, power, industrial, and medical devices.
Source: CNBC