Texas Instruments is acquiring Silicon Labs in an all-cash transaction valued at approximately $7.5 billion.

The acquisition will combine Texas Instruments’ analogue and embedded processing portfolio with Silicon Labs’ mixed signal and wireless connectivity technologies, reinforcing Texas Instruments’ position in the global embedded wireless connectivity market.

In October, Austin-based Silicon Labs launched an IoT development ecosystem with AI augmentation aimed at embedded applications in industrial automation. The Simplicity Ecosystem helps unify installation, configuration, debugging, and analysis in a single environment with automation and insight at every stage of product development.

Under the terms of the deal, Texas Instruments will pay $231 per share for Silicon Labs, which has approximately 1,200 products that support various wireless connectivity standards and protocols.

The acquisition is expected to generate around $450 million in annual manufacturing and operational synergies within three years post-close.

The deal is subject to regulatory approval and is expected to close within the next few months.