Skyworks Solutions will buy smaller rival Qorvo, the companies announced Tuesday, forming a combined $22 billion company that supplies radio frequency chips to Apple and other smartphone makers.
The stock-and-cash deal, which will create one of the largest suppliers of radio frequency chips in the United States, aims to take advantage of a recovery in smartphone demand from the post-pandemic crisis amid Apple’s focus on in-house chips.
Qorvo shareholders will receive $32.50 in cash and 0.960 shares of Skyworks for each share they own. The total offering price of US$105.31 represents a 14.3% premium to Qorvo’s close on Monday, valuing the company at US$9.76 billion.
Skyworks designs and manufactures analog and mixed-signal chips used in wireless communications, automotive and industrial sectors, and consumer electronics.
The merger of two major U.S. makers of radio frequency chips used in smartphones could also attract tough antitrust scrutiny. The companies expect the deal to close in early 2027.
Source: Terra
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