TipRanks

Notifications

Skyworks Snaps Up Infrastructure & Automotive Business of Silicon Labs

Skyworks Solutions, Inc. (SWKS) has completed the all-cash acquisition of the Infrastructure & Automotive (I&A) business of Silicon Laboratories, Inc. (SLAB) valued at $2.75 billion. Shares closed marginally higher at $192.79 on July 26.

Skyworks manufacturers analog semiconductors with a wide range of applications, including aerospace, automotive, broadband, cellular infrastructure, and entertainment, among others. (See Skyworks Solutions stock charts on TipRanks)

Silicon Laboratories’ I&A business consists of power/isolation, timing, and broadcast product lines, which are highly complementary to Skyworks’ connectivity portfolio. The combined business will potentially enhance Skyworks’ market opportunity to $20 billion annually.

Liam K. Griffin, Chairman, CEO, and President of Skyworks said, “The I&A business brings a highly diversified customer base that will enable our continued expansion into strategic end markets. Together, we will accelerate profitable growth in key industry segments, including electric and hybrid vehicles, industrial and motor control, power supply, 5G wireless infrastructure, optical data communications, and data center.”

Following the news, UBS analyst Timothy Arcuri reiterated a Hold rating on the stock, while raising the price target to $200 (3.7% upside potential) from $195.

Overall, the stock has a Moderate Buy consensus rating based on 12 Buys and 6 Holds. The average Skyworks Solutions price target of $214.94 implies 11.5% upside potential to current levels. Shares have gained 41% over the past year.

Related News:
Aon and Willis Towers Watson Terminate $30B Merger
OTIS Hits All-Time High on Strong Q2 Results; Raises Guidance
Why Has General Motors Been in the Spotlight Lately?

Sheryl Sheth
Sheryl Sheth has been a stock news and financial analysis writer at TipRanks since 2021. She covers a wide range of topics, including company stock analysis, market news reports, earnings analysis, crypto-related articles, social media posts, and informative content writing. As a professional financial writer, Sheryl writes on stocks primarily listed on the NYSE and the NASDAQ. Sheryl started her career as an equity research analyst for Guggenheim Transparent Value Pvt. Ltd. in 2007. Her primary focus was fundamental analysis, including DCF valuation of companies from the banking and finance sector. Hailing from a family of entrepreneurs, Sheryl also has the experience of owning and managing a printing company for six years, before joining TipRanks as a financial writer in May 2021. She holds an MBA degree with a specialization in Finance from Mumbai University. In her free time, Sheryl likes traveling and exploring new places, dancing to keep fit, and listening to music to unwind.