Skyworks Solutions, Inc. (NASDAQ: SWKS) shares surged 12.58% to $85.39 as of 11:08 AM EDT on October 28, 2025, following the announcement of a definitive agreement to merge with Qorvo (NASDAQ: QRVO) in a transformative cash-and-stock transaction.
The deal creates a combined enterprise valued at approximately $22 billion, positioning the merged entity as a U.S.-based global leader in high-performance radio frequency (RF), analog, and mixed-signal semiconductors. The stock opened at $85.66, up from its previous close of $75.84, and reached an intraday high of $90.90 on trading volume of 5.4 million shares—more than double its average volume.
Skyworks and Qorvo Combine to Form a $7.7B Semiconductor Leader
The merger combines two complementary leaders in the semiconductor space, creating a company with pro forma revenue of approximately $7.7 billion and Adjusted EBITDA of $2.1 billion based on the last twelve months ending June 30, 2025.
Under the terms of the agreement, Qorvo shareholders will receive $32.50 in cash plus 0.960 shares of Skyworks common stock for each Qorvo share held at closing. Upon completion, Skyworks shareholders will own approximately 63% of the combined company, while Qorvo shareholders will own roughly 37% on a fully-diluted basis.
Phil Brace, current CEO of Skyworks, will lead the combined company, while Bob Bruggeworth, CEO of Qorvo, will join the Board of Directors. The transaction establishes a $5.1 billion mobile business positioned to address rising RF complexity, alongside a $2.6 billion diversified Broad Markets platform serving defense & aerospace, edge IoT, AI data center, and automotive markets.
The combined engineering talent will include approximately 8,000 engineers and technical experts, supported by over 12,000 issued and pending patents, enabling faster development of advanced system-level solutions.
The transaction is expected to be immediately and meaningfully accretive to non-GAAP earnings per share post-close, with projected annual cost synergies of $500 million or more within 24-36 months when fully integrated.
Skyworks plans to fund the cash portion using a combination of cash on hand and additional financing, with debt financing commitments already secured from Goldman Sachs Bank USA. The combined company’s net leverage at closing is expected to be approximately 1.0x last-twelve-month Adjusted EBITDA, providing a favorable capital structure for continued investments.
Skyworks and Qorvo Report Solid Earnings Ahead of Merger Completion
The Boards of Directors of both companies have unanimously approved the transaction, which is expected to close in early calendar year 2027, subject to regulatory approvals, shareholder approval from both companies, and other customary closing conditions.
Notably, Starboard Value LP, an approximately 8% shareholder of Qorvo, has signed a voting agreement supporting the transaction. The deal includes termination fees of $298.7 million and $100 million under specific circumstances.
In conjunction with the merger announcement, both companies issued preliminary financial results demonstrating strong operational performance. Skyworks reported preliminary fiscal fourth-quarter results with adjusted earnings of $1.76 per share on revenue of $1.1 billion, exceeding expectations. The company also declared its regular quarterly dividend of $0.71 per share. Qorvo announced preliminary fiscal 2026 second-quarter results ending September 27, with adjusted earnings of $2.22 per share on revenue of $1.1 billion, both within previous guidance ranges.
The combined company will strengthen its domestic manufacturing position and improve factory utilization across its manufacturing footprint, advancing U.S. semiconductor production capacity. With enhanced scale, a more diversified customer base, and operational synergies, the merger aims to deliver greater innovation to customers and sustainable value to shareholders.
The companies hosted a joint conference call at 8:00 AM EDT on October 28, 2025, to discuss the proposed transaction and answer investor questions about the strategic rationale and integration plans.