- Proven, Highly Profitable Business Model Aligned with Skyworks’
Strategy
- Expected to be Immediately Accretive
- Accelerates Revenue Diversification
- Complementary Product Portfolio in Attractive End Markets
- Combined Market Opportunity Approaching $20 Billion
Annually
Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of
high-performance analog semiconductors connecting people, places
and things, today announced that it has entered into a definitive
agreement with Silicon Laboratories Inc. (Nasdaq: SLAB), 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.
Conference Call and Webcast
Skyworks will host a conference call with analysts today at 5
p.m. EDT. To listen to the conference call via the Internet, please
visit the investor relations section of Skyworks’ website. To
listen to the conference call via telephone, please call (844)
583-4549 (domestic) or (825) 312-2257 (international), Conference
ID: 8392854.
Playback of the conference call will begin at 9 p.m. EDT on Apr.
22, 2021, and end at 9 p.m. EDT on Apr. 28, 2021. The replay will
be available on Skyworks’ website or by calling (800) 585-8367
(domestic) or (416) 621-4642 (international), Conference ID:
8392854.
About Skyworks
Skyworks Solutions, Inc. is empowering the wireless networking
revolution. Our highly innovative analog semiconductors are
connecting people, places and things spanning a number of new and
previously unimagined applications within the aerospace,
automotive, broadband, cellular infrastructure, connected home,
industrial, medical, military, smartphone, tablet and wearable
markets.
Skyworks is a global company with engineering, marketing,
operations, sales and support facilities located throughout Asia,
Europe and North America and is a member of the S&P 500® and
Nasdaq-100® market indices (Nasdaq: SWKS). For more information,
please visit Skyworks’ website at: www.skyworksinc.com.
About Silicon Labs
Silicon Labs is a leading provider of silicon, software and
solutions for a smarter, more connected world. Our award-winning
technologies are shaping the future of the Internet of Things,
Internet infrastructure, industrial automation, consumer and
automotive markets. Our world-class engineering team creates
products focused on performance, energy savings, connectivity and
simplicity. silabs.com
Safe Harbor Statement
Any forward-looking statements contained in this press release
are intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. These forward-looking statements include, without limitation,
information regarding the transaction between Skyworks and Silicon
Labs, the expected timetable for completing the transaction, future
financial and operating results, the benefits, synergies and
accretion related to the transaction and any other statements by
the management of Skyworks or Silicon Labs regarding future
expectations, beliefs, goals, plans or prospects. Forward-looking
statements can often be identified by words such as “anticipates,”
“expects,” “forecasts,” “intends,” “believes,” “plans,” “may,”
“will” or “continue,” and similar expressions and variations or
negatives of these words. Actual events and/or results may differ
materially and adversely from such forward-looking statements as a
result of certain risks and uncertainties including, but not
limited to, the occurrence of any event, change or other
circumstances that could give rise to the termination of the
purchase agreement; the outcome of any legal proceedings that could
be instituted against Skyworks or Silicon Labs, or their respective
boards of directors, related to the purchase agreement; the ability
to satisfy the closing conditions of the transaction when
anticipated or at all, including the receipt of all regulatory
approvals related to the transaction, and the ability to close the
transaction; the ability of Skyworks to obtain the necessary
financing arrangements set forth in the debt commitment letter
delivered pursuant to the purchase agreement; the ability of
Skyworks to successfully integrate the assets acquired and
employees transferred pursuant to the purchase agreement; the risk
that Skyworks may not realize the anticipated benefits from the
transactions contemplated by the purchase agreement; the
availability and pricing of third-party semiconductor foundry,
assembly and test capacity, raw materials and supplier components;
the cyclical nature of the semiconductor industry; risks that the
proposed transaction disrupts current plans and operations and the
potential difficulties in employee retention as a result of the
transaction; Skyworks’ ability to obtain design wins from
customers; technological and product development risks; enforcement
and protection of intellectual property rights and related risks;
risks related to the security of our information systems and
secured networks; changes in laws, regulations and/or policies that
could adversely affect Skyworks’ or Silicon Labs’ operations and
financial results, the economy, customer demand for products, the
financial markets or the effects of exchange rate fluctuations;
risks of changes in U.S. or international tax rates or legislation;
the effects of the global COVID-19 pandemic; the effects of local
and national economic, credit and capital market conditions on the
economy in general; and other risks and uncertainties described
herein, as well as those risks and uncertainties discussed from
time to time in our other reports and other public filings with the
Securities and Exchange Commission (“SEC”), including, but not
limited to, those detailed in Skyworks’ Annual Report on Form 10-K
for the year ended October 2, 2020 (and/or its most recent
Quarterly Report on Form 10-Q), filed with the SEC and in Silicon
Labs’ Annual Report on Form 10-K for the year ended January 2, 2021
(and/or its most recent Quarterly Report on Form 10-Q), filed with
the SEC. Any forward-looking statements contained in this press
release are made only as of the date hereof and should not be
relied upon as representing our views as of any subsequent date,
and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
Note to Editors: Skyworks and the Skyworks symbol are trademarks
or registered trademarks of Skyworks Solutions, Inc., or its
subsidiaries in the United States and other countries. Silicon
Laboratories, Silicon Labs, the "S" symbol, the Silicon
Laboratories logo and the Silicon Labs logo are trademarks of
Silicon Laboratories Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20210422006034/en/
Media Relations: Constance Griffiths (949) 231-4207
Investor Relations: Mitch Haws (949) 231-3223
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