Silicon Labs Divests Infrastructure, Automotive Unit for $2.75B

The divestiture means Silicon Labs, owners of Z-Wave, is fully focused on IoT connectivity with its chipsets.

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Silicon Labs (NASDAQ: SLAB), owner of Z-Wave, has announced the completion of the divestiture of its Infrastructure & Automotive business to Skyworks Solutions (NASDAQ: SWKS) for $2.75 billion in an all-cash asset transaction.

“I thank the dedicated team at both companies for executing a transformative transaction,” says Silicon Labs CEO Tyson Tuttle. “To my former infrastructure and automotive colleagues, you have not only been a cornerstone of Silicon Labs’ success but also a personal source of pride. We wish you continued successes at Skyworks Solutions.”

The closure officially positions the company as a pure-play leader of secure, intelligent wireless connectivity. The company’s leading wireless development platform, unmatched product portfolio, award-winning security technology and robust ecosystem enable it to capitalize on the growing, diverse global IoT market. 

Silicon Labs acquired the Z-Wave business from Sigma Designs in 2018. In December 2019, the company announced it was opening up Z-Wave to allow other companies to build the chipsets necessary for the wireless network versus requiring all Z-Wave-based companies to buy chips from Silicon Labs.

The company expects to utilize a significant portion of the net proceeds of approximately $2.3 billion after taxes and transaction costs to return approximately $2.0 billion to shareholders through a combination of special dividends and/or share repurchases.

About the Author

Jason Knott
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Jason Knott:

Jason Knott is Chief Content Officer for Emerald's Connected Brands. Jason has covered low-voltage electronics as an editor since 1990, serving as editor and publisher of Security Sales & Integration. He joined CE Pro in 2000 and serves as Editor-in-Chief of that brand. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He has been a member of the CEDIA Business Working Group since 2010. Jason graduated from the University of Southern California.

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