US-based Skyworks Solutions has completed its previously announced acquisition of Qorvo, a semiconductor manufacturing company that specialises in radio frequency (RF), connectivity, and power technologies.
In October last year, Skyworks announced the deal which values the combined entity at approximately $22bn.
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The transaction creates a significantly larger company in the high-performance RF, power management, and analogue and mixed-signal semiconductor markets.
The combined business will retain the Skyworks name and continue trading under the SWKS symbol on the NASDAQ.
The newly merged company now employs around 8,000 engineers and owns more than 12,000 issued and pending patents, creating what it describes as a stronger and more diversified provider of RF and related technologies.
In the mobile sector, the expanded RF front-end portfolio is expected to help the company address increasing complexity related to 5G-Advanced and the future transition towards 6G technologies.
Beyond mobile applications, the merger is projected to more than double Skyworks’ addressable market by extending reach into sectors such as defence and aerospace, physical AI and connected edge, data centre and networking, and automotive.
The technology offering now includes RF GaN, low-voltage power, and wired broadband solutions.
Skyworks CEO and president Phil Brace said: “Our customers are tackling increasingly complex challenges and need partners with the capabilities, engineering expertise and scale to help them innovate faster.
“Together, we are well positioned to deliver more integrated, system-level solutions and accelerate the next generation of connected technologies.”
The company anticipates annualised cost synergies of at least $500m within 24 to 36 months following full integration. It also expects the merger to be immediately accretive to non-GAAP earnings per share.
Under the terms of the agreement, Qorvo shareholders will receive $32.50 in cash and 0.960 shares of Skyworks common stock per Qorvo share.
Following the transaction, former Skyworks shareholders own about 63% of the combined company, and former Qorvo shareholders approximately 37%, on a fully diluted basis.
Phil Brace will continue as CEO and president of Skyworks.
Qorvo former CEO and president and Skyworks newly appointed board member Bob Bruggeworth said: “This next chapter begins with an immense amount of pride. I’ve had the opportunity to see firsthand our teams preparing for this moment with tremendous focus and discipline.
“I have great confidence in the future of the combined company and its ability to deliver on the promise of the combination.”
