Investorsยท2025-10-28 12:45Core Viewpoint - The merger between Skyworks Solutions and Qorvo aims to create a leading supplier of smartphone radio-frequency chips, responding to competitive pressures from Apple, which is developing its own modem chips [1][2]. Company Overview - Skyworks and Qorvo will combine to form a company with annual revenue of $7.7 billion and adjusted earnings of $2.1 billion, with the mobile phone segment expected to generate $5.1 billion in sales [1][2]. Merger Details - Qorvo shareholders will receive $32.50 in cash and 0.96 of a Skyworks share for each share held, valuing the combined company at $22 billion [2]. - Post-merger, Skyworks investors will own approximately 63% of the new entity, while Qorvo shareholders will hold the remaining 37% on a fully diluted basis [2]. Leadership Structure - Phil Brace, the CEO of Skyworks, will lead the combined company, while Qorvo's CEO Bob Bruggeworth will join the board of directors [3]. Market Reaction - Following the announcement, Skyworks stock increased by over 12% to $85.23, and Qorvo stock rose by more than 11% to $102.75 in premarket trading [4]. Strategic Rationale - The merger is expected to enhance the companies' ability to meet growing customer demand across mobile and diversified Broad Markets, including defense, aerospace, IoT, AI data centers, and automotive sectors [5]. Timeline - The merger is anticipated to close in early 2027, subject to regulatory and shareholder approvals [6].