RTTNews | Apr 22, 2021 04:51PM EDT

16:51 Thursday, April 22, 2021 (RTTNews.com) - Silicon Laboratories Inc (SLAB) Thursday said it has agreed to sell its infrastructure and automotive business to Skyworks Solutions Inc. (SWKS) for $2.75 billion. Shares of Silicon Laboratories jumped 6% following the news.

The deal includes Silicon Labs' power/isolation, timing and broadcast products, intellectual property and associated employees.

Silicon Labs expects to receive $2.3 billion in proceeds from the deal and will return about $2 billion to shareholders through a combination of special dividends and buybacks.

The deal is expected to close in the third quarter of 2021, the company said.

"The outcome of this deal is a measurable testament to the industry-leading solutions and strong financial performance the world-class infrastructure and automotive team delivered the last 25 years," said Silicon Labs CEO Tyson Tuttle.

Silicon Labs also said it expects its first-quarter revenues to be about $255 million. Analysts polled by Thomson Reuters currently estimate revenues of $242.11 million.

Skyworks said it expects the deal to be immediately accretive and to accelerate the path to Skyworks achieving its target financial model.

SLAB closed Thursday's trading at $144.65, down $3.30 or 2.23%, on the Nasdaq. The stock, however, gained $9.35 or 6.46%, in the after-hours trade.

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