Silicon Labs, a provider of silicon and software solutions, has announced the sale of its infrastructure and automotive chip business to Skyworks Solutions for $2.75 billion.
After taxes and transaction fees, it will generate net proceeds of $2.3 billion for Silicon Labs, $2 billion of which is going to be returned to its shareholders through a combination of dividends and share repurchases.
As part of the transaction, Skyworks Solutions will be receiving Silicon Labs’ power/isolation, timing and broadcast products, as well as the associated intellectual property and employees.
Following the transaction, Silicon Labs will focus its efforts on the Internet of things (IoT) space, becoming a pure play in that arena rather than splitting its focus.
Skyworks believes the purchase will speed up its expansion into fast growing segments, including EVs and hybrids, industrial and motor control, power supply, 5G, data centers, and other key applications.