Woburn-Based Skyworks Announces $2 Billion Merger

Woburn-based Skyworks Solutions, Inc., an innovator of high performance analog semiconductors connecting people, places and things, and PMC-Sierra, Inc., a semiconductor and software solutions leader in storage, optical and mobile networks, Tuesday announced a definitive agreement under which Skyworks will acquire PMC in an all-cash transaction valued at approximately $2 billion.

Upon completion of the acquisition, Skyworks expects annual revenues of more than $4 billion with gross margin in the 55 percent range and operating margin exceeding 40 percent.

“With our acquisition of PMC, Skyworks will be uniquely positioned to capitalize on the explosive demand for high performance solutions that seamlessly connect, transport and store Big Data,” said David J. Aldrich, chairman and chief executive officer of Skyworks.

Under the terms of the agreement, PMC’s stockholders will receive $10.50 in cash for each share of PMC common stock held at closing. This price represents a 37 percent premium to the close of PMC’s stock as of October 5, 2015.

Skyworks intends to fund the acquisition with cash on hand from the combined companies and with new, fully-committed debt financing. The closing of the transaction is not subject to financing conditions.

The Boards of Directors of each company have approved the transaction, which is expected to close in the first half of calendar 2016.

Skyworks is located on 20 Sylvan Road in Woburn.