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S SILICON LABS Silicon Labs Announces Agreement to Divest Infrastructure and Automotive Business April 22 , 2021 11:00 AM EDT Company to Become Pure - Play Leader of Intelligent , Wireless Connectivity for the loT Highlights : • Skyworks Solutions will acquire the Infrastructure and Automotive business of Silicon Labs for $ 2.75 billion • Transaction accelerates company's loT market leadership and growth • Silicon Labs intends to return approximately $ 2.0 billion to shareholders post - closing • Strategic transaction unlocks significant shareholder value AUSTIN , Texas - Apr. 22 , 2021 - Silicon Labs ( NASDAQ : SLAB ) announced today the company has entered into a definitive asset purchase agreement to sell its Infrastructure & Automotive ( I & A ) business to Skyworks Solutions , Inc. ( NASDAQ : SWKS ) for $ 2.75 billion in all - cash consideration . The transaction includes Silicon Labs ' power / isolation , timing and broadcast products , intellectual property and associated employees . Silicon Labs and Skyworks will collaborate to ensure a seamless transition for customers , suppliers and employees . " The outcome of this deal is a measurable testament to the industry - leading solutions and strong financial performance the world - class infrastructure and automotive team delivered the last 25 years , " said Silicon Labs CEO Tyson Tuttle . Silicon Labs expects to receive an estimated $ 2.3 billion in net proceeds after taxes and transaction fees . The company intends to return approximately $ 2.0 billion to shareholders through a combination of special dividends and / or share repurchases after the transaction closes . The boards of directors of both companies have approved the transaction , which is expected to close in the third quarter of 2021 subject to customary closing conditions and regulatory approvals in various jurisdictions . The company does not believe this transaction will require regulatory approval in China . The proceeds provide an ideal opportunity for Silicon Labs to return value directly to its shareholders , while also increasing the ability to fully participate in the strong , expected loT market growth . Today , the company also provided preliminary revenue results for the first quarter ended April 3 , 2021. Silicon Labs expects total Q1 revenue to be approximately $ 255 million . This represents an increase of roughly 5 percent sequentially and 19 percent year - over - year with the forecasted upside primarily due to solid growth in loT , continued strength in bookings , and durable demand trends . Accelerating loT Market Leadership Silicon Labs ' two businesses , loT and I & A , are fundamentally different - each with unique markets , customers , supply chains , R & D , and go - to - market strategies . After executing the I & A divestiture , Silicon Labs will be a pure - play leader of intelligent , wireless connectivity for the loT . The company's resulting focus on loT comes at a time when the overall market and Silicon Labs ' growth opportunities are accelerating , as industry projections anticipate a multi - year ramp in connected devices . " The massive growth in connected devices makes this the right time for us to exclusively focus on the large , diverse , growing loT opportunity , " said Silicon Labs CFO John Hollister . " Our updated operating model for the loT business indicates a long - term revenue growth rate of 20 percent , outpacing the forecasted industry CAGR of mid - teens for our combined target loT end markets of Industrial & Commercial and Home & Life . " With the investments Silicon Labs is making in the loT business , the company expects to drive sustainable growth and deliver long - term 20-25 percent non - GAAP operating margin , demonstrating the inherent leverage potential as a standalone IoT - focused company . Delivering Unmatched Wireless Technology Silicon Labs possesses the industry's most comprehensive wireless portfolio , supporting the widest range of protocols , including Bluetooth , proprietary , Thread , Wi - Sun , Wi - Fi , Zigbee and Z - Wave , and major ecosystems , such as Amazon , Google , Tuya and Xfinity . Built on an integrated hardware and software platform specifically designed for loT development , the company's connectivity solution is the only wireless