Texas Instruments Is Paying 9.6x Revenue for Silicon Labs

Texas Instruments has agreed to acquire Silicon Labs for $231 per share in cash, valuing the transaction at approximately $7.5 billion. The offer represents about a 69% premium to Silicon Labs’ unaffected share price, and the companies expect the deal to close in the first half of 2027. Texas Instruments has projected approximately $450 million in annual manufacturing and operational synergies within three years of closing.

The transaction is Texas Instruments’ largest acquisition since its $6.5 billion purchase of National Semiconductor in 2011. The agreement includes termination fees of $259 million for Silicon Labs and $499 million for Texas Instruments. Public reporting indicates the acquisition will be financed with cash on hand and debt.

Texas Instruments has tied the projected $450 million in annual savings to manufacturing and operational efficiencies, including plans to internalize Silicon Labs’ production into Texas Instruments’ fabrication facilities.

A 69% Premium at 9.6x Sales

Silicon Labs reported fiscal 2025 revenue of approximately $784 million, including about $208 million in fourth-quarter revenue, with GAAP gross margins of roughly 58% and revenue growth of approximately 34% year over year.