Skyworks Solutions (NASDAQ:SWKS) is beefing up its business with the addition of assets from Silicon Laboratories (NASDAQ:SLAB). The former has struck a deal with the latter to buy its infrastructure and automotive unit. The price is $2.75 billion, which is to be paid fully in cash.

Skyworks said it anticipates funding the buy with the cash on its books, plus committed debt financing that has been arranged by JPMorgan Chase unit J.P. Morgan. At the end of its most recently reported quarter, the company had $617 million in cash.

Cars driving along an urban road at night.

Image source: Getty Images.

Owning the Silicon Labs wing "will broadly expand our capabilities across high-growth end markets including automotive, communications and industrial, creating new and highly compelling opportunities for Skyworks," the company's CEO Liam Griffin was quoted as saying in the official press release trumpeting the acquisition.

The automotive segment is particularly appealing, given the auto industry's relentless drive toward autonomous operation. The emergence of ambitious and highly competitive next-generation carmakers such as Fisker also presents opportunities to expand Skyworks' client list, and its presence in the industry.

Perhaps as a result, Skyworks wrote in its press release that it believes the deal will be immediately accretive to its results, although it did not break out estimates. The acquisition has been approved by the boards of directors of both companies, and is subject to approval by the relevant regulatory authorities. Skyworks anticipates that it will close in the third quarter of calendar 2021.

On Thursday, however, Skyworks stock closed 1.7% lower, a slightly steeper decline than the 0.9% drop of the S&P 500 index. It seems Silicon Labs investors weren't happy with the arrangement, either, as shares of their company slipped by 2.2%.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.