The merger will create a company with about $7.7 billion in annual revenue.
- The merger will create a company with about $7.7 billion in annual revenue.
- Skyworks expects the deal to deliver more than $500 million in annual cost synergies within three years.
- The transaction, subject to regulatory and shareholder approvals, is expected to close in 2026.
Skyworks Solutions (SWKS) announced on Monday that it will acquire Qorvo (QRVO) in a cash-and-stock transaction valuing the combined company at about $22 billion.
QRVO’s stock rose as much as 13% in pre-market trade, with retail sentiment on Stocktwits surging from ‘extremely bullish’ to ‘neutral’ territory as chatter jumped to ‘high’ from ‘low’ levels over the past day. Meanwhile, SWKS’ stock rose as much as 12% with retail sentiment climbing to ‘bullish’ from ‘neutral’ territory, as chatter ticked higher within ‘neutral’ levels.
Terms Of Skyworks-Qorvo Merger
Under the agreement, Qorvo shareholders will receive $32.50 in cash and 0.96 Skyworks shares for each Qorvo share. Following the merger, Skyworks shareholders will own roughly 63% of the combined entity, while Qorvo investors will hold 37%. The transaction will be funded through Skyworks’ cash reserves and debt financing arranged by Goldman Sachs Bank USA, the company said.
Phil Brace, currently chief executive of Skyworks, will lead the merged company, while Qorvo CEO Bob Bruggeworth will join its board. The combined board will include 11 members, eight from Skyworks and three from Qorvo.
The transaction, subject to regulatory and shareholder approvals, is expected to close in 2026.
Scale And Synergies
Skyworks said the merger will create a company with about $7.7 billion in annual revenue and $2.1 billion in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA). It added that this would position both entities to better compete with larger chipmakers. According to Skyworks, the deal is expected to deliver more than $500 million in annual cost synergies within three years.
The combined firm will operate a $5.1 billion mobile business and a $2.6 billion “Broad Markets” segment focused on defense, aerospace, edge IoT, automotive, and AI data center applications. Those end-markets, both companies said, offer longer product cycles and higher-margin opportunities.
Skyworks and Qorvo said the merger will expand U.S. manufacturing capacity and improve factory utilization across their domestic network. The combined firm will employ about 8,000 engineers and hold more than 12,000 issued and pending patents.
By consolidating R&D and production, the new company aims to compete more effectively with global semiconductor rivals and capture growth from rising demand for advanced RF systems and AI-driven electronics.
Read also: Bitcoin Holds Near $114K Ahead of Fed Rate Decision — SOL, XRP Edge Higher
For updates and corrections, email newsroom[at]stocktwits[dot]com.<