Skyworks and Qorvo have agreed to combine their businesses in a transaction that will value the merged entity at around $22bn. 

The deal, structured as a combination of cash and stock, will provide Qorvo shareholders with $32.50 in cash and 0.960 shares of Skyworks common stock for each Qorvo share at closing.

The merged entity will operate from the US, focusing on high-performance radio frequency (RF), analogue, and mixed-signal semiconductor solutions.

Skyworks shareholders will own 63% of the combined entity, while Qorvo’s shareholders will hold 37% on a fully diluted basis.

Skyworks Solutions operates globally across Asia, Europe, and North America.

It specialises in analogue and mixed-signal semiconductors for applications spanning aerospace, automotive, cellular infrastructure, connected home devices, defence and entertainment systems, industrial and medical equipment, smartphones, and wearables.

Qorvo supplies semiconductor technologies for automotive, consumer electronics, defence and aerospace sectors, industrial markets, infrastructure and mobile communications.

Qorvo CEO and president Bob Bruggeworth said: “Together with Skyworks, we can accelerate innovation and deliver broader and more comprehensive solutions across numerous growth areas.

“We are excited to leverage the combined strengths of our teams and product and technology portfolios to build on our capabilities in Mobile and significantly expand our presence in defence and aerospace, edge IoT, AI data centre, automotive and other industries powered by secular growth trends.”

The merged company will bring together approximately 8,000 engineers and technical staff and hold over 12,000 issued and pending patents.

Phil Brace has been named as the incoming CEO of the joint company, with Bob Bruggeworth joining the board of directors, which will include eight members from Skyworks and three from Qorvo.

The unified business is expected to have estimated annual revenue of $7.7bn and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $2.1bn.

The transaction will establish a mobile business segment generating $5.1bn in revenue alongside a diversified platform in broad markets, including defence, aerospace, edge IoT, automotive, and AI data centres, estimated at $2.6bn in revenue.

Skyworks CEO and president Phil Brace said: “Combining Skyworks’ and Qorvo’s complementary portfolios and world-class engineering teams will strengthen our ability to meet growing customer demand across mobile and diversified broad markets.

“With enhanced scale, a more diversified customer base and operational synergies, we can bring even greater innovation to our customers and sustainable value to our shareholders.”

The transaction is projected to close in early 2027, subject to regulatory clearance, approval by both sets of shareholders, and standard closing conditions.

Skyworks intends to finance the transaction with a mix of existing cash reserves and new debt commitments from Goldman Sachs Bank USA.