Shares of Skyworks Solutions Inc.
SWKS,
-1.71%
and Silicon Laboratories Inc.
SLAB,
-2.23%
rose in the extended session Thursday after Skyworks announced it has agreed to buy Silicon Labs' infrastructure and automotive business in an all-cash deal valued at $2.75 billion. The deal "will accelerate Skyworks' expansion into the industry's most important growth segments," including electric and hybrid vehicles, 5G wireless infrastructure, smart-home applications and other areas, a combined market opportunity "approaching $20 billion" a year, Skyworks said. The deal is expected to close in the third quarter, and it has has been approved by the boards of directors of both companies, Skyworks said. Funding will likely come from a combination of cash on hand and debt financing arranged by J.P. Morgan, it said.