for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

CORRECTED-UPDATE 1-Silicon Labs to sell infrastructure and auto unit to Skyworks for $2.75 billion

(Corrects headline to say $2.75 billion, not $27.5 billion)

April 22 (Reuters) - Silicon Laboratories Inc said on Thursday it would sell its infrastructure and automotive business to Skyworks Solutions Inc for $2.75 billion, in a move that would let the chipmaker focus on its core business.

Shares of Silicon Labs were halted in after hours trading, while Skyworks shares were up 3.8% at $190.47.

Austin, Texas-based Silicon Labs has been in recent months focused on the internet-of-things market, selling wireless chips for smart home devices.

The deal includes Silicon Labs’ power and isolation, timing and broadcast products, intellectual property and associated employees, the company said in a statement.

Silicon Labs expects to receive $2.3 billion in net 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. (Reporting by Noor Zainab Hussain and Stephen Nellis; Editing by Ramakrishnan M.)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up