Texas Instruments announced Wednesday that it is acquiring Silicon Labs, a semiconductor manufacturer and wireless technology company, for $231 a share cash, representing a total enterprise value of about $7.5 billion.
A&O Shearman is representing TI, with a team led by Robert Cardone, Alain Dermarkar and Michael Walraven in Dallas. DLA Piper is serving as outside legal counsel to Silicon Labs.
Katie Kane is the general counsel of Texas Instruments, which is based in North Dallas, with a significant manufacturing presence in the adjoining suburb of Richardson. Néstor Ho Gutiérrez is the chief legal officer for Austin-based Silicon Labs.
Nasdaq-listed shares of Silicon Labs closed Tuesday at $136.62, and climbed to $182.08 in after-hours trading. TI, which makes analog and embedded processing chips, said the deal expands its portfolio by about 1,200 products and creates a “global leader in embedded wireless connectivity” services. TI also said it plans to bring Silicon Labs’ manufacturing operations back to the U.S.
TI CEO Haviv Ilan said the acquisition marks “a significant milestone that strengthens our long-term embedded processing strategy.”
“Silicon Labs’ leading embedded wireless connectivity portfolio enhances our technology and IP, enabling greater scale and allowing us to better serve our customers,” Ilan said. “Texas Instruments’ industry-leading and internally owned technology and manufacturing is optimized for Silicon Labs’ portfolio, and will provide customers dependable supply worldwide.”
Silicon Labs CEO Matt Johnson said the companies “share a strong Texas heritage and a long-term commitment to building technology companies the right way.”
The companies expect to see about $450 million of annual synergies within three years of close, which is expected in the first half of 2027. Goldman Sachs is the exclusive financial advisor to TI, and Qatalyst Partners is the financial advisor to Silicon Labs.
Other A&O lawyers who advised Texas Instruments on the transaction include Dallas Partner Ryan Bray, and associates Hannah Marshall, John Kurtz, Samantha Favela, Ian Johnson, Kaitlin Scheich and Michael Buiteweg. Noah Brumfield advised from D.C., with JB Betker in New York.
A&O’s Co-Managing Partner of the U.S. Doreen Lilienfeld and Ken Rivlin, co-head of the firm’s environmental and climate group and co-head of the international trade group, also worked on the deal.