Shares of Qorvo, Inc. (NASDAQ:QRVO) and Skyworks Solutions, Inc. (NASDAQ:SWKS) are surging on Tuesday after the companies announced a deal to merge at approximately $22 billion.
Monetary Details
The deal is structured as a cash-and-stock transaction, where Qorvo shareholders will receive $32.50 cash and 0.960 of a Skyworks share for each share they hold.
Skyworks has secured debt financing commitments from Goldman Sachs Bank USA and will use cash on hand to fund the deal.
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The transaction has received unanimous approval from both boards of directors.
The deal is projected to close in early 2027, subject to obtaining the required regulatory clearances.
Combined Company Details
The merger creates a combined entity with $7.7 billion in pro forma revenue and $2.1 billion in Adjusted EBITDA.
Post closure, Skyworks shareholders will own about 63% of the new company, and Qorvo shareholders will own the remaining stake.
The combined company will feature a $5.1 billion mobile business positioned to handle increasing RF complexity, and a $2.6 billion diversified Broad Markets platform targeting defense, aerospace, edge IoT, AI data center, and automotive markets.
The favorable pro forma net leverage for the combined company is expected to be about 1.0x Adjusted EBITDA at closing.
Synergies
Post-closure, the transaction is expected to be immediately and meaningfully accretive to non-GAAP EPS.
The companies expect to see at least $500 million in annual cost synergies within 24 to 36 months of full integration.
QRVO Preliminary Results
In a separate release, Qorvo announced second-quarter preliminary results, reporting $1.1 billion in revenue, adjusted gross margin of 49.7%, and adjusted EPS of $2.22 (vs. cons. of $2.02).
Qorvo will announce quarterly results on Nov. 3, 2025.
SWKS Preliminary Results
The company sees $1.10 billion in revenue and adjusted EPS of $1.76 in the fourth quarter.
The quarter generated $200 million in operating cash flow and included a dividend declaration of $0.71 per share in the quarter.
Skyworks plans to report its fourth quarter results on Nov. 4.
Price Action: QRVO shares are up 11.78% at $102.97, while SWKS shares are up 14.06% at $86.50 at the last check on Tuesday.
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