Apple Suppliers Skyworks and Qorvo Merge!

Apple suppliers Skyworks Solutions and Qorvo have decided to merge with cash and stock to create a radio chip company worth $22 billion. This deal is expected to close in early 2027, pending shareholder and regulatory approvals.

Qorvo shareholders will receive $32.50 in cash and 0.96 Skyworks shares for each Qorvo share when the transaction is completed. Active investor Starboard Value, which owns approximately 8% of Qorvo, was the first group to approve this merger. Skyworks stated during a conference call on Tuesday that its largest customers also support the merger.

Upon completion of the transaction, Skyworks shareholders will own approximately 63% of the combined company, while Qorvo shareholders will hold the remaining 37%. Both companies produce radio frequency components and semiconductors for a wide range of technologies, including mobile phones. They expressed that as a combined company, they would be better positioned to compete against larger rivals due to increasing demand.

Skyworks CEO Phil Brace will serve as the CEO of the combined company, while Qorvo CEO Bob Bruggeworth will join the board of directors. After the closing, the company's board will have eight members from Skyworks and three from Qorvo.

Skyworks specializes in high-performance analog and mixed-signal semiconductors, based in Irvine, California, while Qorvo offers connectivity and power solutions. The merger will create a $5.1 billion mobile business.

Skyworks announced preliminary results for the fourth quarter on Tuesday, exceeding Wall Street's revenue and profit expectations. Qorvo also released preliminary results for its latest quarter, and those figures also surpassed Wall Street's forecasts.