Skyworks Solutions, Inc. · NASDAQ:SWKS
Skyworks Solutions — Merger or Acquisition (April 2021)
12 slides from Skyworks Solutions's merger presentation, Apr 22, 2021
Slide 1: Skyworks to Acquire Infrastructure Automotive Business From Silicon Labs
Skyworks to Acquire Infrastructure Automotive Business From Silicon Labs April 22, 2021
Slide 2: Safe Harbor Statement
2 SAFE HARBOR STATEMENT Any forward - looking statements contained in this presentation are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995 . These forward - looking statements include, without limitation, information regardi
Slide 3: Transaction Overview
TRANSACTION OVERVIEW oSkyworks to acquire Infrastructure Automotive ("I A") business of Silicon Labs in an all-cash asset transaction valued at $2.75 billion oThe acquisition encompasses the technology portfolios and related assets of Silicon Labs in: -Power / Isolation -Timing -Broadcast oTeam of 3
Slide 4: Strategically Compelling Transaction
4 STRATEGICALLY COMPELLING TRANSACTION Combined Market Opportunity ~$20 Billion Annually Immediately Accretive Complementary Product Portfolio in Attractive Markets Proven, Highly Profitable Business Aligned with Skyworks’ Strategy Accelerates Revenue Diversification Shared Culture of Innovation and
Slide 5: Silicon Labs I&A Business Snapshot
5 Focus Markets Selected Products Broadcast Power/Isolation Timing SILICON LABS I&A BUSINESS SNAPSHOT Highly Profitable Business Model with Solid Design Wins in High - Growth Markets • 5G wireless infrastructure • Optical data communications • Data center • Industrial & automotive • Electric and hyb
Slide 6: Accelerates Revenue Diversification
6 Skyworks + I&A Silicon Labs I&A Skyworks ACCELERATES REVENUE DIVERSIFICATION Communications Industrial Automotive C onsumer Broad Markets 30% Mobile 70% Broad Markets 40% Mobile 60% Total Revenue Exceeds $5 Billion Broad Markets Becomes 40% of Mix
Slide 7: Complementary Portfolio With Diversified Customer Base
7 COMPLEMENTARY PORTFOLIO WITH DIVERSIFIED CUSTOMER BASE SKYWORKS + SILICON LABS I&A Automotive Communications & Data Center Industrial Consumer SILICON LABS I&A • No Single Customer accounts for >10% • Top 10 Customers make up ~30% of revenue • 4,000+ Customers make up remaining ~70% of revenue
Slide 8: ~$14B Expands Skyworks' Market Opportunity
8 ~$14B EXPANDS SKYWORKS’ MARKET OPPORTUNITY 2020 2020 Pro Forma Combined Market Opportunity 2023 ~$14B ~$3B I&A ~$20B+
Slide 9: Shared Culture of Innovation and Design Excellence
9 SHARED CULTURE OF INNOVATION AND DESIGN EXCELLENCE All key senior leaders are expected to join Skyworks, along with I&A’s more than 350 employees Silicon Labs’ I&A senior leadership team brings over 85 years of combined experience
Slide 10: Transaction Summary
10 TRANSACTION SUMMARY Terms • All - cash transaction of $2.75 billion Financing • $2.5 billion of new debt and the remainder from Skyworks’ balance sheet cash Closing • Expected to close during the third calendar quarter of 2021 • Subject to customary closing conditions and regulatory approvals Fin
Slide 11: Transaction Financing and Capital Allocation
11 TRANSACTION FINANCING AND CAPITAL ALLOCATION Credit Facility • $2.5 billion of new transaction debt at close − $1.5 billion of committed term loan − $1.0 billion of investment grade bonds Capital Allocation Policy • Rapid de - levering with term loan repayment • Expected to maintain current divid
Slide 12: Further Strengthens Best-in-Class Financial Model
12 FURTHER STRENGTHENS BEST - IN - CLASS FINANCIAL MODEL Accelerates Path to Achieving Target Model >Market Revenue Growth 53% Gross Margin 40% Operating Margin 30% FCF Margin
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