| |
Delaware
|
| |
3674
|
| |
04-2302115
|
|
| |
(State or other jurisdiction of
incorporation or organization) |
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(Primary Standard Industrial
Classification Code Number) |
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(I.R.S. Employer
Identification No.) |
|
| |
Kenton J. King, Esq.
Sonia K. Nijjar, Esq. Skadden, Arps, Slate, Meagher & Flom LLP 525 University Avenue, 14th Floor Palo Alto, CA 94301 (650) 470-4500 |
| |
J.K. Givens, Esq.
Senior Vice President and General Counsel, Secretary Qorvo, Inc. 7628 Thorndike Road Greensboro, North Carolina 27409 (336) 664-1233 |
| |
Paul S. Scrivano, Esq.
Cheryl Chan, Esq. Davis Polk & Wardwell LLP 900 Middlefield Road Redwood City, CA 94063 (650) 752-2000 |
|
| |
Large accelerated filer
☒
|
| |
Accelerated filer
☐
|
|
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Non-accelerated filer
☐
|
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Smaller reporting company
☐
|
|
| | | | |
Emerging growth company
☐
|
|
| |
Philip G. Brace
President and Chief Executive Officer Skyworks Solutions, Inc. |
| |
Robert A. Bruggeworth
President and Chief Executive Officer Qorvo, Inc. |
|
| |
For Skyworks Stockholders:
D.F. King & Co., Inc. 28 Liberty St, 53rd floor New York, NY 10005 Stockholders may call toll-free: +1 (866) 416-0577 Banks and brokers may call collect: +1 (212)-434-0035 |
| |
For Qorvo Stockholders:
Innisfree M&A Incorporated 501 Madison Avenue, 20th Floor New York, NY 10022 Stockholders may call toll free: +1 (877) 750-9499 Banks and brokers may call collect: +1 (212) 750-5833 |
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| |
Acquisition Proposal
|
| | in the case of Qorvo, a Qorvo Acquisition Proposal and, in the case of Skyworks, a Skyworks Acquisition Proposal | |
| |
Closing
|
| | the closing of the Mergers | |
| |
Closing Date
|
| | the date on which the Closing occurs | |
| |
Code
|
| | the Internal Revenue Code of 1986, as amended | |
| |
Combined Company
|
| | Skyworks and the Skyworks subsidiaries (including Qorvo and the Qorvo subsidiaries), taken as a whole, after giving effect to the Mergers | |
| |
DGCL
|
| | the General Corporation Law of the State of Delaware | |
| |
Dissenting Shares
|
| | shares of Qorvo Common Stock held by a holder who has made a proper demand for appraisal of such shares of Qorvo Common Stock in accordance with Section 262 of the DGCL and who has otherwise complied with all applicable provisions of Section 262 of the DGCL, until such time as such holder fails to perfect, validly withdraws its demand for, or otherwise loses such holder’s appraisal rights under Section 262 of the DGCL with respect to such shares | |
| |
DLLCA
|
| | the Delaware Limited Liability Company Act | |
| |
ERISA
|
| | the Employee Retirement Income Security Act of 1974, as amended | |
| |
Exchange Act
|
| | the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder | |
| |
GAAP
|
| | United States generally accepted accounting principles, applied on a consistent basis | |
| |
HSR Act
|
| | the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the regulations promulgated thereunder | |
| |
Intervening Event
|
| | with respect to Qorvo, a Qorvo Intervening Event, and, with respect to Skyworks, a Skyworks Intervening Event | |
| |
Merger Agreement
|
| | the Agreement and Plan of Merger, dated as of October 27, 2025, as may be amended, restated, supplemented or otherwise modified from time to time, among Qorvo, Inc., a Delaware corporation, Skyworks Solutions, Inc., a Delaware corporation, Comet Acquisition Corp., a Delaware corporation, and Comet Acquisition II, LLC, a Delaware limited liability company | |
| |
Outside Date
|
| | 11:59 p.m., Pacific Time, on April 27, 2027, or such other date agreed in writing by Skyworks and Qorvo, as such date may be extended in accordance with the Merger Agreement | |
| |
Permanent Financing
|
| | the issuance and sale of senior unsecured notes pursuant to a registered public offering or a Rule 144A and/or other private placement in an aggregate principal amount of up to $1.5 billion | |
| |
Qorvo Acquisition Proposal
|
| | any offer, inquiry, indication of interest or proposal (other than an offer or proposal by Skyworks) contemplating, involving or otherwise relating to a Qorvo Acquisition Transaction | |
| |
Qorvo Acquisition Transaction
|
| | (a) any transaction or series of transactions (other than the Transactions) pursuant to which any person or “group” (as defined in the Exchange Act) acquires or would acquire, directly or indirectly, beneficial ownership (as defined in the Exchange Act) of more than fifteen percent (15%) of the outstanding shares of Qorvo Common Stock or other equity interests of Qorvo (or options, rights or warrants to purchase, or securities convertible into or exchangeable for, such securities) representing more than fifteen percent (15%) of the outstanding shares of any class of voting securities of Qorvo, including pursuant to a stock purchase, merger, consolidation, tender offer, share exchange or similar transaction involving Qorvo, (b) any transaction or series of transactions pursuant to which any person or “group” (as defined in the Exchange Act) acquires or would acquire, directly or indirectly, control of assets (including for this purpose the outstanding equity interests of Qorvo subsidiaries and any entity surviving any merger or combination including any of them) of Qorvo or the Qorvo subsidiaries representing more than fifteen percent (15%) of the revenues, net income or assets (in each case, on a consolidated basis) of Qorvo and the Qorvo subsidiaries, taken as a whole, (c) any direct or indirect sale, lease, exchange, transfer, exclusive license (other than any Qorvo ordinary course license) or disposition of assets representing more than fifteen percent (15%) of the revenues, net income or assets (in each case, on a consolidated basis) of Qorvo and the Qorvo subsidiaries, taken as a whole, or (d) any other acquisition of a business or business combination transaction (including by stock purchase, merger, consolidation, tender offer, share exchange or similar transaction) involving (i) Qorvo which would result in any third party (or the stockholders of such third party) owning more than 15% of the total outstanding shares of voting securities of Qorvo or (ii) Qorvo or the Qorvo subsidiaries which would result in any third party owning assets of Qorvo or the Qorvo subsidiaries representing more than 15% of the revenues, net income or assets (in each case, on a consolidated basis) of Qorvo and the Qorvo subsidiaries, taken as a whole, that would reasonably be expected to prevent or materially delay the Transactions | |
| |
Qorvo Intervening Event
|
| | a material event, fact, development or occurrence affecting the business, assets or operations of Qorvo (other than any event, fact, development or occurrence resulting from a material breach of the Merger Agreement by Qorvo) that is unknown and not reasonably foreseeable to the Qorvo Board as of October 27, 2025 (or, if known or reasonably foreseeable, the material consequences of which were not known or reasonably foreseeable to the Qorvo Board as of October 27, 2025) and becomes known to the Qorvo Board after October 27, 2025 and prior to the receipt of the Qorvo stockholder approval necessary to adopt this Agreement and to approve the Transactions (provided, however, that in no event shall any event, fact, development or occurrence resulting from or relating to any of the following give rise to a Qorvo Intervening Event: (a) the receipt, existence or terms of a Qorvo Acquisition Proposal; (b) the public announcement, execution, delivery or performance of the | |
| | | | | Merger Agreement, the identity of Skyworks, or the public announcement, pendency or consummation of the transactions contemplated thereby (or the public announcement of any discussions among the parties related thereto); or (c) any change in the trading price or trading volume of the Qorvo Common Stock or Skyworks Common Stock (although for purposes of clarity, any underlying facts, events, changes, developments or set of circumstances, with respect to this clause (c) relating to or causing such change may be considered, along with the effects or consequences thereof)) | |
| |
Qorvo Superior Proposal
|
| | a bona fide written Qorvo Acquisition Proposal that was not solicited in violation of the non-solicitation covenant set forth in the Merger Agreement that, if consummated, would result in a person or group (or the stockholders of any person) owning, directly or indirectly, (a) more than fifty percent (50%) of the outstanding shares of Qorvo Common Stock, or (b) more than fifty percent (50%) of the assets of Qorvo and the Qorvo subsidiaries taken as a whole, in either case, which the Qorvo Board determines in good faith (after consultation with its legal counsel and financial advisor): (i) to be reasonably likely to be consummated on the terms proposed if accepted; and (ii) if consummated, would result in a transaction more favorable to Qorvo’s stockholders from a financial point of view than the Mergers, in each case, taking into account at the time of determination all relevant circumstances, including the various legal, financial and regulatory aspects of the proposal, all the terms and conditions of such proposal and the Merger Agreement, any changes to the terms of the Merger Agreement offered in writing by Skyworks in response to such Qorvo Acquisition Proposal, the identity of the person making the Qorvo Acquisition Proposal, the anticipated timing, conditions and the ability of the person making such Qorvo Acquisition Proposal to consummate the transactions contemplated by such Qorvo Acquisition Proposal, and that if such Qorvo Acquisition Proposal is to be financed, such financing is, at the time of the making of such Qorvo Acquisition Proposal, (A) fully committed or (B) the Qorvo Board has determined in good faith that it is reasonably likely to be obtained prior to the consummation of such Qorvo Acquisition Proposal. | |
| |
Second Effective Time
|
| | the effective time of the Second Merger | |
| |
Securities Act
|
| | the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder | |
| |
Skyworks Acquisition Proposal
|
| | any offer, inquiry, indication of interest or proposal (other than an offer or proposal by Qorvo) contemplating, involving or otherwise relating to a Skyworks Acquisition Transaction | |
| |
Skyworks Acquisition Transaction
|
| | (a) any transaction or series of transactions (other than the Transactions) pursuant to which any person or “group” (as defined in the Exchange Act) acquires or would acquire, directly or indirectly, beneficial ownership (as defined in the Exchange Act) of more than fifteen percent (15%) of the outstanding shares of Skyworks Common Stock or other equity interests of Skyworks (or options, rights or warrants to purchase, or | |
| | | | | securities convertible into or exchangeable for, such securities) representing more than fifteen percent (15%) of the outstanding shares of any class of voting securities of Skyworks, including pursuant to a stock purchase, merger, consolidation, tender offer, share exchange or similar transaction involving Skyworks, (b) any transaction or series of transactions pursuant to which any person or “group” (as defined in the Exchange Act) acquires or would acquire, directly or indirectly, control of assets (including for this purpose the outstanding equity interests of Skyworks subsidiaries and any entity surviving any merger or combination including any of them) of Skyworks or the Skyworks subsidiaries representing more than fifteen percent (15%) of the revenues, net income or assets (in each case, on a consolidated basis) of Skyworks and the Skyworks subsidiaries, taken as a whole, (c) any direct or indirect sale, lease, exchange, transfer, exclusive license (other than any Skyworks ordinary course license) or disposition of assets representing more than fifteen percent (15%) of the revenues, net income or assets (in each case, on a consolidated basis) of Skyworks and the Skyworks subsidiaries, taken as a whole, or (d) any other acquisition of a business or business combination transaction (including by stock purchase, merger, consolidation, tender offer, share exchange or similar transaction) involving (i) Skyworks which would result in any third party (or the stockholders of such third party) owning more than 15% of the total outstanding shares of voting securities of Skyworks or (ii) Skyworks or the Skyworks subsidiaries which would result in any third party owning assets of Skyworks or the Skyworks subsidiaries representing more than 15% of the revenues, net income or assets (in each case, on a consolidated basis) of Skyworks and the Skyworks subsidiaries, taken as a whole, that would reasonably be expected to prevent or materially delay the Transactions. | |
| |
Skyworks Bylaws
|
| | the Fourth Amended and Restated By-laws of Skyworks | |
| |
Skyworks Certificate of Incorporation
|
| | the Restated Certificate of Incorporation of Skyworks, dated as of August 1, 2023, as amended | |
| |
Skyworks Intervening Event
|
| | means a material event, fact, development or occurrence affecting the business, assets or operations of Skyworks (other than any event, fact, development or occurrence resulting from a material breach of the Merger Agreement by Skyworks) that is unknown and not reasonably foreseeable to the Skyworks Board as of October 27, 2025 (or, if known or reasonably foreseeable, the material consequences of which were not known or reasonably foreseeable to the Skyworks Board as of October 27, 2025) and becomes known to the Skyworks Board after October 27, 2025 and prior to the receipt of the Skyworks stockholder approval necessary to approve the Skyworks Stock Issuance (provided, however, that in no event shall any event, fact, development or occurrence resulting from or relating to any of the following give rise to a Skyworks Intervening Event: (a) the receipt, existence or terms of a Skyworks Acquisition Proposal; (b) the public announcement, execution, delivery or performance of the Merger Agreement, the identity of Qorvo, or the public announcement, pendency or consummation of the | |
| | | | | transactions contemplated thereby (or the public announcement of any discussions among the parties related thereto); or (c) any change in the trading price or trading volume of the Skyworks Common Stock or Qorvo Common Stock (although for purposes of clarity, any underlying facts, events, changes, developments or set of circumstances, with respect to this clause (c) relating to or causing such change may be considered, along with the effects or consequences thereof)) | |
| |
Skyworks Stock Issuance
|
| | the issuance of shares of Skyworks Common Stock pursuant to the Merger Agreement | |
| |
Skyworks Superior Proposal
|
| | means a bona fide written Skyworks Acquisition Proposal that was not solicited in violation of the non-solicitation covenant set forth in the Merger Agreement that, if consummated, would result in a person or group (or the stockholders of any person) owning, directly or indirectly, (a) more than fifty percent (50%) of the outstanding shares of Skyworks Common Stock or (b) more than fifty percent (50%) of the assets of Skyworks and the Skyworks subsidiaries taken as a whole, in either case, which the Skyworks Board determines in good faith (after consultation with its legal counsel and financial advisor): (i) to be reasonably likely to be consummated on the terms proposed if accepted; and (ii) if consummated, would result in a transaction more favorable to Skyworks’ stockholders from a financial point of view than the Mergers, in each case, taking into account at the time of determination all relevant circumstances, including the various legal, financial and regulatory aspects of the proposal, all the terms and conditions of such proposal and the Merger Agreement, any changes to the terms of the Merger Agreement offered in writing by Qorvo in response to such Skyworks Acquisition Proposal, the identity of the person making the Skyworks Acquisition Proposal, the anticipated timing, conditions and the ability of the person making such Skyworks Acquisition Proposal to consummate the transactions contemplated by such Skyworks Acquisition Proposal, and that if such Skyworks Acquisition Proposal is to be financed, such financing is, at the time of the making of such Skyworks Acquisition Proposal, (A) fully committed or (B) the Skyworks Board has determined in good faith that it is reasonably likely to be obtained prior to the consummation of such Skyworks Acquisition Proposal | |
| |
Superior Proposal
|
| | in the case of Qorvo, a Qorvo Superior Proposal and, in the case of Skyworks, a Skyworks Superior Proposal | |
| |
Surviving Company
|
| | Merger Sub II as the surviving entity in the Second Merger | |
| |
For Skyworks Stockholders:
D.F. King & Co., Inc. 28 Liberty St, 53rd floor New York, NY 10005 Stockholders may call toll-free: +1 (866) 416-0577 Banks and brokers may call collect: +1 (212)-434-0035 |
| |
For Qorvo Stockholders:
Innisfree M&A Incorporated 501 Madison Avenue, 20th Floor New York, NY 10022 Stockholders may call toll free: +1 (877) 750-9499 Banks and brokers may call collect: +1 (212) 750-5833 |
|
| | | |
Skyworks
Common Stock |
| |
Qorvo
Common Stock |
| |
Implied value of one (1)
share of Qorvo Common Stock |
| |||||||||
|
October 27, 2025(a)
|
| | | $ | 75.84 | | | | | $ | 92.13 | | | | | $ | 105.31 | | |
|
November 28, 2025(b)
|
| | | $ | 65.95 | | | | | $ | 85.89 | | | | | $ | 95.81 | | |
| | | |
Historical
|
| |
Reclassification
transaction accounting adjustments |
| | | | |
Merger
transaction accounting adjustments |
| | | | | | | |
Financing
transaction accounting adjustments |
| | | | | | | |
Pro Forma
Combined 6[g] |
| |||||||||||||||||||||
| | | |
Skyworks
Solutions, Inc. |
| |
Qorvo, Inc.
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | | |
For the
Year Ended October 3, 2025 |
| |
For the
Year Ended September 27, 2025 |
| |
October 3,
2025 |
| ||||||||||||||||||||||||||||||||||||||||||
|
Net revenue
|
| | | $ | 4,087 | | | | | $ | 3,663 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 7,750 | | |
|
Cost of goods sold
|
| | | | 2,405 | | | | | | 2,076 | | | | | | | | | | | | | | | (83) | | | | | | 6[e] | | | | | | | | | | | | | | | | | | 4,916 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | 262 | | | | | | 6[e] | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | 256 | | | | | | 6[h] | | | | | | | | | | | | | | | | | | | | |
|
Gross profit
|
| | | | 1,682 | | | | | | 1,587 | | | | | | — | | | | | | | | | (435) | | | | | | | | | | | | | | | | | | | | | | | | 2,834 | | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Research and development
|
| | | | 785 | | | | | | 737 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,522 | | |
|
Selling, general, and administrative
|
| | | | 372 | | | | | | — | | | | | | 229 | | | |
6[a][1]
|
| | | | 112 | | | | | | 6[c] | | | | | | | | | | | | | | | | | | 920 | | |
| | | | | | | | | | | | | | | | | | 167 | | | |
6[a][2]
|
| | | | 50 | | | | | | 6[b] | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | (10) | | | | | | 6[e] | | | | | | | | | | | | | | | | | | | | |
|
Marketing and selling
|
| | | | — | | | | | | 229 | | | | | | (229) | | | |
6[a][1]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | |
|
General and administrative
|
| | | | — | | | | | | 167 | | | | | | (167) | | | |
6[a][2]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | |
|
Amortization of intangibles
|
| | | | 1 | | | | | | — | | | | | | | | | | | | | | | 155 | | | | | | 6[e] | | | | | | | | | | | | | | | | | | 156 | | |
|
Restructuring and other
charges |
| | | | 24 | | | | | | — | | | | | | 105 | | | |
6[a][3]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 129 | | |
|
Goodwill and intangible asset impairment
|
| | | | — | | | | | | 80 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 80 | | |
|
Other operating expense
|
| | | | — | | | | | | 105 | | | | | | (105) | | | |
6[a][3]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | |
|
Total operating expenses
|
| | | | 1,182 | | | | | | 1,318 | | | | | | — | | | | | | | | | 307 | | | | | | | | | | | | — | | | | | | | | | | | | 2,807 | | |
|
Operating income
|
| | | | 500 | | | | | | 269 | | | | | | | | | | | | | | | (742) | | | | | | | | | | | | — | | | | | | | | | | | | 27 | | |
|
Interest expense
|
| | | | (27) | | | | | | (76) | | | | | | | | | | | | | | | | | | | | | | | | | | | (152) | | | | | | 6[d] | | | | | | (255) | | |
|
Other income, net
|
| | | | 54 | | | | | | 58 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 112 | | |
|
Income before income taxes
|
| | | | 527 | | | | | | 251 | | | | | | | | | | | | | | | (742) | | | | | | | | | | | | (152) | | | | | | | | | | | | (116) | | |
|
Provision (benefit) for income
taxes |
| | | | 50 | | | | | | 33 | | | | | | | | | | | | | | | (132) | | | | | | 6[f] | | | | | | (32) | | | | | | 6[f] | | | | | | (81) | | |
|
Net income
|
| | | $ | 477 | | | | | $ | 218 | | | | | $ | — | | | | | | | | $ | (610) | | | | | | | | | | | $ | (120) | | | | | | | | | | | $ | (35) | | |
| Earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | $ | 3.09 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.14) | | |
|
Diluted
|
| | | $ | 3.08 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.14) | | |
| Weighted average shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic
|
| | | | 154 | | | | | | | | | | | | | | | | | | | | | 89 | | | | | | 8 | | | | | | | | | | | | | | | | | | 243 | | |
|
Diluted
|
| | | | 155 | | | | | | | | | | | | | | | | | | | | | 89 | | | | | | 8 | | | | | | | | | | | | | | | | | | 244 | | |
| | | |
Historical
|
| |
Reclassification
transaction accounting adjustments |
| | | | |
Merger
transaction accounting adjustments |
| | | | | | | |
Financing
transaction accounting adjustments |
| | | | | | | |
Pro Forma
Combined |
| |||||||||||||||||||||
| | | |
Skyworks
Solutions, Inc. |
| |
Qorvo, Inc.
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | | |
As of
October 3, 2025 |
| |
As of
September 27, 2025 |
| |
As of
October 3, 2025 |
| ||||||||||||||||||||||||||||||||||||||||||
| ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Cash and cash equivalents
|
| | | $ | 1,161 | | | | | $ | 1,103 | | | | | $ | — | | | | | | | | $ | (3,003) | | | | | | 7[i] | | | | | $ | 2,981 | | | | | | 7[f] | | | | | $ | 2,242 | | |
|
Marketable securities
|
| | | | 213 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 213 | | |
|
Receivables, net of allowances
|
| | | | 598 | | | | | | 543 | | | | | | — | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,141 | | |
|
Inventory
|
| | | | 755 | | | | | | 605 | | | | | | — | | | | | | | | | 256 | | | | | | 7[k] | | | | | | — | | | | | | | | | | | | 1,616 | | |
|
Prepaid expenses
|
| | | | — | | | | | | 34 | | | | | | (34) | | | |
7[a][1]
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
|
Other receivables
|
| | | | — | | | | | | 17 | | | | | | (17) | | | |
7[a][2]
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
|
Other current assets
|
| | | | 350 | | | | | | 75 | | | | | | 34 | | | |
7[a][1]
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 476 | | |
| | | | | | | | | | | | | | | | | | 17 | | | |
7[a][2]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total current assets
|
| | | | 3,077 | | | | | | 2,377 | | | | | | — | | | | | | | | | (2,747) | | | | | | | | | | | | 2,981 | | | | | | | | | | | | 5,688 | | |
|
Property, plant, and equipment, net
|
| | | | 1,195 | | | | | | 781 | | | | | | — | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,976 | | |
|
Operating lease right-of-use assets
|
| | | | 192 | | | | | | — | | | | | | 55 | | | |
7[a][3]
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 247 | | |
|
Goodwill
|
| | | | 2,177 | | | | | | 2,390 | | | | | | — | | | | | | | | | (2,390) | | | | | | 7[b] | | | | | | — | | | | | | | | | | | | 6,647 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | 4,470 | | | | | | 7[b] | | | | | | | | | | | | | | | | | | | | |
|
Intangible assets, net
|
| | | | 809 | | | | | | 224 | | | | | | — | | | | | | | | | (224) | | | | | | 7[c] | | | | | | — | | | | | | | | | | | | 4,452 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | 3,643 | | | | | | 7[c] | | | | | | | | | | | | | | | | | | | | |
|
Deferred tax assets, net
|
| | | | 376 | | | | | | — | | | | | | 118 | | | |
7[a][4]
|
| | | | (118) | | | | | | 7[l] | | | | | | — | | | | | | | | | | | | 376 | | |
|
Marketable securities
|
| | | | 14 | | | | | | 17 | | | | | | (17) | | | |
7[a][5]
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 14 | | |
|
Other long-term assets
|
| | | | 77 | | | | | | 307 | | | | | | (55) | | | |
7[a][3]
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 228 | | |
| | | | | | | | | | | | | | | | | | (118) | | | |
7[a][4]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 17 | | | |
7[a][5]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total assets
|
| | | $ | 7,917 | | | | | $ | 6,096 | | | | | $ | — | | | | | | | | $ | 2,634 | | | | | | | | | | | $ | 2,981 | | | | | | | | | | | $ | 19,628 | | |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Accounts payable
|
| | | $ | 236 | | | | | $ | 285 | | | | | $ | — | | | | | | | | $ | 112 | | | | | | 7[e] | | | | | $ | — | | | | | | | | | | | $ | 633 | | |
|
Accrued compensation and
benefits |
| | | | 181 | | | | | | — | | | | | | 144 | | | |
7[a][6]
|
| | | | 50 | | | | | | 7[h] | | | | | | — | | | | | | | | | | | | 394 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | 19 | | | | | | 7[j] | | | | | | | | | | | | | | | | | | | | |
|
Current portion of long-term debt
|
| | | | 499 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 499 | | |
|
Accrued liabilities
|
| | | | — | | | | | | 287 | | | | | | (144) | | | |
7[a][6]
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
| | | | | | | | | | | | | | | | | | (143) | | | |
7[a][7]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Other current liabilities
|
| | | | 407 | | | | | | 233 | | | | | | 143 | | | |
7[a][7]
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 783 | | |
|
Total current liabilities
|
| | | | 1,323 | | | | | | 805 | | | | | | — | | | | | | | | | 181 | | | | | | | | | | | | — | | | | | | | | | | | | 2,309 | | |
| | | |
Historical
|
| |
Reclassification
transaction accounting adjustments |
| | | | |
Merger
transaction accounting adjustments |
| | | | | | | |
Financing
transaction accounting adjustments |
| | | | | | | |
Pro Forma
Combined |
| |||||||||||||||||||||
| | | |
Skyworks
Solutions, Inc. |
| |
Qorvo, Inc.
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | | |
As of
October 3, 2025 |
| |
As of
September 27, 2025 |
| |
As of
October 3, 2025 |
| ||||||||||||||||||||||||||||||||||||||||||
|
Long-term debt
|
| | | | 496 | | | | | | 1,549 | | | | | | — | | | | | | | | | (74) | | | | | | 7[g] | | | | | | 2,981 | | | | | | 7[f] | | | | | | 4,952 | | |
|
Long-term tax liabilities
|
| | | | 86 | | | | | | — | | | | | | 91 | | | |
7[a][8]
|
| | | | (118) | | | | | | 7[l] | | | | | | — | | | | | | | | | | | | 752 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | 693 | | | | | | 7[l] | | | | | | | | | | | | | | | | | | | | |
|
Long-term operating lease liabilities
|
| | | | 171 | | | | | | — | | | | | | 42 | | | |
7[a][9]
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 213 | | |
|
Other long-term liabilities
|
| | | | 84 | | | | | | 232 | | | | | | (91) | | | |
7[a][8]
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 183 | | |
| | | | | | | | | | | | | | | | | | (42) | | | |
7[a][9]
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total liabilities
|
| | | | 2,160 | | | | | | 2,586 | | | | | | — | | | | | | | | | 682 | | | | | | | | | | | | 2,981 | | | | | | | | | | | | 8,409 | | |
| Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Common stock
|
| | | | 37 | | | | | | 3,431 | | | | | | — | | | | | | | | | (3,431) | | | | | | 7[d] | | | | | | — | | | | | | | | | | | | 37 | | |
|
Additional paid-in capital
|
| | | | 68 | | | | | | — | | | | | | — | | | | | | | | | 5,621 | | | | | | 7[i] | | | | | | — | | | | | | | | | | | | 5,711 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | 22 | | | | | | 7[i] | | | | | | | | | | | | | | | | | | | | |
|
Retained earnings
|
| | | | 5,657 | | | | | | 73 | | | | | | — | | | | | | | | | (73) | | | | | | 7[d] | | | | | | — | | | | | | | | | | | | 5,476 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | (112) | | | | | | 7[e] | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | (50) | | | | | | 7[h] | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | (19) | | | | | | 7[j] | | | | | | | | | | | | | | | | | | | | |
|
Accumulated other comprehensive loss
|
| | | | (5) | | | | | | 6 | | | | | | — | | | | | | | | | (6) | | | | | | 7[d] | | | | | | — | | | | | | | | | | | | (5) | | |
|
Total stockholders’ equity
|
| | | | 5,757 | | | | | | 3,510 | | | | | | — | | | | | | | | | 1,952 | | | | | | | | | | | | — | | | | | | | | | | | | 11,219 | | |
|
Total liabilities and stockholders’ equity
|
| | | $ | 7,917 | | | | | $ | 6,096 | | | | | $ | — | | | | | | | | $ | 2,634 | | | | | | | | | | | $ | 2,981 | | | | | | | | | | | $ | 19,628 | | |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Consideration transferred [a]: | | | | | | | | | | | | | |
| |
Estimated cash consideration
|
| | | | [b] | | | | | $ | 3,003 | | |
| |
Estimated fair value of Skyworks Common Stock to be issued
|
| | | | [c] | | | | | | 5,602 | | |
| |
Estimated fair value of assumed Qorvo equity awards attributable to pre-combination services
|
| | | | [d] | | | | | | 41 | | |
| |
Total estimated merger consideration
|
| | | | | | | | | $ | 8,646 | | |
| |
Total estimated cash consideration
|
| | | | | | | | | | 3,003 | | |
| |
Total estimated equity consideration
|
| | | | | | | | | | 5,643 | | |
| |
Total estimated merger consideration
|
| | | | | | | | | $ | 8,646 | | |
| | | | | | | | | |
Estimated
fair value |
| |||
|
Cash and cash equivalents
|
| | | | | | | | | $ | 1,103 | | |
|
Receivables, net of allowances
|
| | | | | | | | | | 543 | | |
|
Inventory
|
| | | | [a] | | | | | | 861 | | |
|
Other current assets
|
| | | | | | | | | | 126 | | |
|
Property, plant, and equipment, net
|
| | | | [b] | | | | | | 781 | | |
|
Intangible assets, net
|
| | | | [c] | | | | | | 3,643 | | |
|
Marketable securities
|
| | | | | | | | | | 17 | | |
|
Other long-term assets
|
| | | | [a] | | | | | | 189 | | |
|
Accounts payable and other current liabilities
|
| | | | | | | | | | (805) | | |
|
Long-term debt
|
| | | | [a] | | | | | | (1,475) | | |
|
Other long-term liabilities
|
| | | | [a] | | | | | | (807) | | |
|
Total identifiable net assets
|
| | | | | | | | | $ | 4,176 | | |
|
Estimated purchase price
|
| | | | | | | | | | 8,646 | | |
|
Estimated goodwill
|
| | | | [d] | | | | | $ | 4,470 | | |
|
Intangible Asset
|
| |
Estimated
Useful Life |
| |
Approximate
Fair Value |
| ||||||
|
Technology based intangibles
|
| | | | 8 | | | | | $ | 2,093 | | |
|
Customer-based intangibles
|
| | | | 10 | | | | | | 1,550 | | |
|
Total
|
| | | | | | | | | $ | 3,643 | | |
| | | |
Skyworks Closing Price
|
| |
Qorvo Closing Price
|
| ||||||||||||||||||||||||||||||
|
Date
|
| |
High
|
| |
Low
|
| |
Close
|
| |
High
|
| |
Low
|
| |
Close
|
| ||||||||||||||||||
| 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
October 3, 2025
|
| | | $ | 78.2 | | | | | $ | 76.9 | | | | | $ | 77.1 | | | | | $ | 94.3 | | | | | $ | 91.3 | | | | | $ | 93.5 | | |
|
June 27, 2025
|
| | | $ | 75.2 | | | | | $ | 73.9 | | | | | $ | 74.8 | | | | | $ | 84.6 | | | | | $ | 82.4 | | | | | $ | 83.9 | | |
|
March 28, 2025
|
| | | $ | 66.0 | | | | | $ | 63.7 | | | | | $ | 64.1 | | | | | $ | 73.9 | | | | | $ | 71.1 | | | | | $ | 71.5 | | |
|
December 27, 2024
|
| | | $ | 90.7 | | | | | $ | 89.4 | | | | | $ | 90.2 | | | | | $ | 71.8 | | | | | $ | 70.7 | | | | | $ | 71.4 | | |
| 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
September 27, 2024
|
| | | $ | 100.7 | | | | | $ | 98.4 | | | | | $ | 98.9 | | | | | $ | 105.5 | | | | | $ | 103.1 | | | | | $ | 103.6 | | |
|
June 28, 2024
|
| | | $ | 107.5 | | | | | $ | 106.0 | | | | | $ | 106.6 | | | | | $ | 116.4 | | | | | $ | 113.4 | | | | | $ | 116.0 | | |
|
March 29, 2024(1)
|
| | | $ | 109.6 | | | | | $ | 106.6 | | | | | $ | 107.0 | | | | | $ | 116.7 | | | | | $ | 113.6 | | | | | $ | 114.2 | | |
|
December 29, 2023
|
| | | $ | 114.1 | | | | | $ | 112.1 | | | | | $ | 112.4 | | | | | $ | 114.3 | | | | | $ | 112.3 | | | | | $ | 112.6 | | |
| 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
September 29, 2023
|
| | | $ | 100.7 | | | | | $ | 98.3 | | | | | $ | 98.6 | | | | | $ | 96.9 | | | | | $ | 95.3 | | | | | $ | 95.5 | | |
|
June 30, 2023
|
| | | $ | 111.6 | | | | | $ | 109.9 | | | | | $ | 110.7 | | | | | $ | 102.4 | | | | | $ | 101.2 | | | | | $ | 102.0 | | |
|
March 31, 2023
|
| | | $ | 118.1 | | | | | $ | 116.3 | | | | | $ | 118.0 | | | | | $ | 101.8 | | | | | $ | 100.0 | | | | | $ | 101.6 | | |
|
December 30, 2022
|
| | | $ | 91.2 | | | | | $ | 89.0 | | | | | $ | 91.1 | | | | | $ | 90.7 | | | | | $ | 87.9 | | | | | $ | 90.6 | | |
|
Period
|
| |
Dividend
per Share |
| |
Declaration Date
|
| |
Record Date
|
| |
Payment Date
|
|
| October 3, 2025 | | |
0.71
|
| | October 28, 2025 | | | November 18, 2025 | | | December 9, 2025 | |
| June 27, 2025 | | |
0.71
|
| | August 5, 2025 | | | August 26, 2025 | | | September 16, 2025 | |
| March 28, 2025 | | |
0.70
|
| | May 7, 2025 | | | May 27, 2025 | | | June 17, 2025 | |
| December 27, 2024 | | |
0.70
|
| | February 5, 2025 | | | February 24, 2025 | | | March 17, 2025 | |
| September 27, 2024 | | |
0.70
|
| | November 12, 2024 | | | December 3, 2024 | | | December 24, 2024 | |
| June 28, 2024 | | |
0.70
|
| | July 30, 2024 | | | August 20, 2024 | | | September 10, 2024 | |
| March 29, 2024 | | |
0.68
|
| | April 30, 2024 | | | May 21, 2024 | | | June 11, 2024 | |
| December 29, 2023 | | |
0.68
|
| | January 30, 2024 | | | February 20, 2024 | | | March 12, 2024 | |
|
Dollars in millions, for the fiscal years ended(1)
|
| |
Sep-25
|
| |
Sep-26
|
| |
Sep-27
|
| |
Sep-28
|
| |
Sep-29
|
| |
Sep-30
|
| ||||||||||||||||||
|
Revenue
|
| | | $ | 4,087 | | | | | $ | 3,700 | | | | | $ | 3,987 | | | | | $ | 4,291 | | | | | $ | 4,627 | | | | | $ | 5,019 | | |
|
Gross Profit
|
| | | $ | 1,907 | | | | | $ | 1,696 | | | | | $ | 1,900 | | | | | $ | 2,124 | | | | | $ | 2,337 | | | | | $ | 2,635 | | |
|
Operating Expenses
|
| | | $ | 912 | | | | | $ | 935 | | | | | $ | 975 | | | | | $ | 1,015 | | | | | $ | 1,056 | | | | | $ | 1,098 | | |
|
Operating Income
|
| | | $ | 995 | | | | | $ | 761 | | | | | $ | 925 | | | | | $ | 1,109 | | | | | $ | 1,281 | | | | | $ | 1,537 | | |
|
EBITDA
|
| | | $ | 1,305 | | | | | $ | 1,093 | | | | | $ | 1,268 | | | | | $ | 1,451 | | | | | $ | 1,606 | | | | | $ | 1,872 | | |
| NOPAT(2) | | | | $ | 895 | | | | | $ | 662 | | | | | $ | 796 | | | | | $ | 943 | | | | | $ | 1,089 | | | | | $ | 1,306 | | |
|
Unlevered Free Cash Flow (unburdened)(3)
|
| | | $ | 1,082 | | | | | $ | 597 | | | | | $ | 787 | | | | | $ | 947 | | | | | $ | 1,080 | | | | | $ | 1,298 | | |
|
Unlevered Free Cash Flow (burdened)(4)
|
| | | | | | | | | $ | 388 | | | | | $ | 573 | | | | | $ | 727 | | | | | $ | 850 | | | | | $ | 1,059 | | |
| | | |
Qorvo Management Plan (Calendar Year Basis)
|
| |||||||||||||||||||||||||||
|
Dollars in Millions
|
| |
CY26E
|
| |
CY27E
|
| |
CY28E
|
| |
CY29E
|
| |
CY30E
|
| |||||||||||||||
|
Revenue
|
| | | $ | 3,650 | | | | | $ | 3,793 | | | | | $ | 4,025 | | | | | $ | 4,280 | | | | | $ | 4,539 | | |
|
Gross Profit
|
| | | $ | 1,829 | | | | | $ | 1,940 | | | | | $ | 2,082 | | | | | $ | 2,225 | | | | | $ | 2,361 | | |
|
Operating Profit
|
| | | $ | 816 | | | | | $ | 918 | | | | | $ | 1,036 | | | | | $ | 1,142 | | | | | $ | 1,219 | | |
|
Net Income
|
| | | $ | 693 | | | | | $ | 804 | | | | | $ | 934 | | | | | $ | 1,055 | | | | | $ | 1,151 | | |
|
Dollars in Millions
|
| |
Q4 CY25E(2)
|
| |
CY26E
|
| |
CY27E
|
| |
CY28E
|
| |
CY29E
|
| |
CY30E
|
| ||||||||||||||||||
|
Unlevered Free Cash Flow (Burdened)(1)
|
| | | $ | 172 | | | | | $ | 612 | | | | | $ | 715 | | | | | $ | 842 | | | | | $ | 873 | | | | | $ | 912 | | |
| | | |
Skyworks Management Plan (Calendar Year Basis)
|
| |||||||||||||||||||||||||||
|
Dollars in Millions
|
| |
CY26E
|
| |
CY27E
|
| |
CY28E
|
| |
CY29E
|
| |
CY30E
|
| |||||||||||||||
|
Revenue
|
| | | $ | 3,772 | | | | | $ | 4,063 | | | | | $ | 4,375 | | | | | $ | 4,725 | | | | | $ | 5,107 | | |
|
Gross Profit
|
| | | $ | 1,747 | | | | | $ | 1,956 | | | | | $ | 2,177 | | | | | $ | 2,412 | | | | | $ | 2,681 | | |
|
Operating Profit
|
| | | $ | 802 | | | | | $ | 971 | | | | | $ | 1,152 | | | | | $ | 1,345 | | | | | $ | 1,564 | | |
| NOPAT(1) | | | | $ | 696 | | | | | $ | 833 | | | | | $ | 980 | | | | | $ | 1,143 | | | | | $ | 1,329 | | |
|
Dollars in Millions
|
| |
Q4 CY25E(2)
|
| |
CY26E
|
| |
CY27E
|
| |
CY28E
|
| |
CY29E
|
| |
CY30E
|
| ||||||||||||||||||
|
Unlevered Free Cash Flow (Burdened)(1)
|
| | | $ | 35 | | | | | $ | 434 | | | | | $ | 611 | | | | | $ | 757 | | | | | $ | 902 | | | | | $ | 1,078 | | |
|
Dollars in millions, for the fiscal years ended(1)
|
| |
Sep-25
|
| |
Sep-26
|
| |
Sep-27
|
| |
Sep-28
|
| |
Sep-29
|
| |
Sep-30
|
| ||||||||||||||||||
|
Revenue
|
| | | $ | 7,750 | | | | | $ | 7,324 | | | | | $ | 7,715 | | | | | $ | 8,208 | | | | | $ | 8,774 | | | | | $ | 9,405 | | |
|
Gross Profit
|
| | | $ | 3,618 | | | | | $ | 3,487 | | | | | $ | 3,825 | | | | | $ | 4,219 | | | | | $ | 4,623 | | | | | $ | 5,056 | | |
|
Operating Expenses
|
| | | $ | 1,932 | | | | | $ | 1,963 | | | | | $ | 1,876 | | | | | $ | 1,778 | | | | | $ | 1,815 | | | | | $ | 1,908 | | |
|
Operating Income
|
| | | $ | 1,686 | | | | | $ | 1,525 | | | | | $ | 1,949 | | | | | $ | 2,441 | | | | | $ | 2,808 | | | | | $ | 3,148 | | |
|
EBITDA
|
| | | $ | 2,205 | | | | | $ | 2,034 | | | | | $ | 2,464 | | | | | $ | 2,954 | | | | | $ | 3,303 | | | | | $ | 3,654 | | |
| NOPAT(2) | | | | $ | 1,500 | | | | | $ | 1,311 | | | | | $ | 1,667 | | | | | $ | 2,075 | | | | | $ | 2,386 | | | | | $ | 2,676 | | |
|
Unlevered Free Cash Flow (unburdened)(3)
|
| | | $ | 1,789 | | | | | $ | 1,305 | | | | | $ | 1,602 | | | | | $ | 2,073 | | | | | $ | 2,383 | | | | | $ | 2,531 | | |
|
Unlevered Free Cash Flow (burdened)(4)
|
| | | | | | | | | $ | 976 | | | | | $ | 1,033 | | | | | $ | 1,717 | | | | | $ | 2,010 | | | | | $ | 2,140 | | |
|
Announcement Date
|
| |
Target
|
| |
Acquiror
|
| |
NTM
Revenue Multiple |
| |
NTM
EBITDA Multiple |
| |
NTM P/E
Multiple |
|
| 08/02/22 | | | Sierra Wireless, Inc. | | | Semtech Corporation | | |
1.7x
|
| |
18.2x
|
| |
29.2x
|
|
| 05/05/22 | | | Silicon Motion Technology Corporation | | | MaxLinear, Inc. | | |
3.0x
|
| |
11.1x
|
| |
13.3x
|
|
| 02/07/21 | | |
Dialog Semiconductor PLC
|
| | Renesas Electronics Corporation | | |
3.8x
|
| |
14.6x
|
| |
22.9x
|
|
| 10/29/20 | | | Inphi Corporation | | | Marvell Technology Group Ltd. | | |
13.3x
|
| |
37.4x
|
| |
47.0x
|
|
| 10/27/20 | | | Xilinx, Inc. | | | Advanced Micro Devices, Inc. | | |
10.8x
|
| |
29.4x
|
| |
36.4x
|
|
| 07/13/20 | | | Maxim Integrated Products, Inc. | | | Analog Devices, Inc. | | |
9.7x
|
| |
24.4x
|
| |
31.9x
|
|
| 06/03/19 | | | Cypress Semiconductor Corporation | | |
Infineon Technologies AG
|
| |
4.5x
|
| |
18.0x
|
| |
22.1x
|
|
| 03/27/19 | | | Quantenna Communications, Inc. | | | ON Semiconductor Corporation | | |
3.7x
|
| |
25.1x
|
| |
30.6x
|
|
| 03/11/19 | | | Mellanox Technologies, Ltd. | | | NVIDIA Corporation | | |
5.5x
|
| |
16.7x
|
| |
20.2x
|
|
| 09/10/18 | | | Integrated Device Technology, Inc. (IDT) | | | Renesas Electronics Corporation | | |
7.4x
|
| |
21.6x
|
| |
25.9x
|
|
| 03/01/18 | | | Microsemi Corporation | | | Microchip Technology Incorporated | | |
5.0x
|
| |
14.2x
|
| |
15.5x
|
|
| 02/20/18 | | |
NXP Semiconductors N.V.
|
| | Qualcomm Incorporated | | |
4.9x
|
| |
13.8x
|
| |
17.5x
|
|
| 11/20/17 | | | Cavium, Inc. | | | Marvell Technology Group Ltd. | | |
6.2x
|
| |
17.7x
|
| |
25.0x
|
|
| 12/20/16 | | | InvenSense, Inc. | | | TDK Corporation | | |
4.0x
|
| |
—
|
| |
—
|
|
| 11/02/16 | | | Brocade Communications Systems, Inc. | | | Broadcom Inc. | | |
2.4x
|
| |
9.5x
|
| |
12.8x
|
|
| 09/12/16 | | | Intersil Corporation | | | Renesas Electronics Corporation | | |
5.4x
|
| |
19.8x
|
| |
31.1x
|
|
| 07/26/16 | | | Linear Technology Corporation | | | Analog Devices, Inc. | | |
9.0x
|
| |
16.4x
|
| |
25.3x
|
|
| 06/15/16 | | | QLogic Corporation | | | Cavium, Inc. | | |
2.1x
|
| |
8.5x
|
| |
14.9x
|
|
| 01/19/16 | | | Atmel Corporation | | | Microchip Technology Incorporated | | |
2.9x
|
| |
15.9x
|
| |
21.7x
|
|
| 11/24/15 | | | PMC-Sierra, Inc. | | | Microsemi Corporation | | |
4.2x
|
| |
14.5x
|
| |
18.6x
|
|
| 11/18/15 | | | Fairchild Semiconductor International, Inc. | | | ON Semiconductor Corporation | | |
1.7x
|
| |
9.1x
|
| |
20.9x
|
|
| 06/01/15 | | | Altera Corporation | | | Intel Corporation | | |
7.7x
|
| |
23.4x
|
| |
35.6x
|
|
| 05/28/15 | | | Broadcom Corporation | | | Avago Technologies Limited | | |
3.6x
|
| |
11.5x
|
| |
15.0x
|
|
| 04/30/15 | | | OmniVision Technologies, Inc. | | | Investor Group | | |
1.0x
|
| |
8.3x
|
| |
22.0x
|
|
| 03/02/15 | | | Freescale Semiconductor, Ltd. | | |
NXP Semiconductors N.V.
|
| |
3.4x
|
| |
13.6x
|
| |
16.7x
|
|
| 12/01/14 | | | Spansion, Inc. | | | Cypress Semiconductor Corporation | | |
1.5x
|
| |
9.6x
|
| |
16.8x
|
|
| 10/14/14 | | | CSR plc | | | Qualcomm Incorporated | | |
2.8x
|
| |
16.7x
|
| |
27.1x
|
|
| 08/20/14 | | | International Rectifier Corporation | | |
Infineon Technologies AG
|
| |
2.0x
|
| |
10.2x
|
| |
22.3x
|
|
| 06/09/14 | | | Hittite Microwave Corporation | | | Analog Devices, Inc. | | |
6.5x
|
| |
13.7x
|
| |
28.6x
|
|
|
Announcement Date
|
| |
Target
|
| |
Acquiror
|
| |
NTM
Revenue Multiple |
| |
NTM
EBITDA Multiple |
| |
NTM P/E
Multiple |
|
| 02/24/14 | | | TriQuint Semiconductor, Inc. | | | RF Micro Devices | | |
1.8x
|
| |
9.3x
|
| |
32.4x
|
|
| 12/16/13 | | | LSI Corporation | | | Avago Technologies Limited | | |
2.7x
|
| |
14.1x
|
| |
17.1x
|
|
| 09/12/11 | | | NetLogic Microsystems, Inc. | | | Broadcom Corporation | | |
8.3x
|
| |
25.4x
|
| |
29.2x
|
|
| 04/04/11 | | | National Semiconductor Corporation | | | Texas Instruments Incorporated | | |
4.4x
|
| |
10.5x
|
| |
18.8x
|
|
| 01/05/11 | | | Atheros Communications, Inc. | | | Qualcomm Incorporated | | |
3.4x
|
| |
19.0x
|
| |
23.5x
|
|
|
Company
|
| |
CY 2026E
EV/EBITDA |
| |
CY 2026E
P/E |
| ||||||
|
Cirrus Logic, Inc.
|
| | | | 9.8x | | | | | | 17.5x | | |
|
Murata Manufacturing Co., Ltd.
|
| | | | 10.1x | | | | | | 22.4x | | |
|
Qorvo
|
| | | | 10.0x | | | | | | 13.4x | | |
|
Company
|
| |
CY 2026E
EV/EBITDA |
| |
CY 2026E
P/E |
| ||||||
|
Qualcomm Incorporated
|
| | | | 11.6x | | | | | | 13.8x | | |
|
Skyworks
|
| | | | 11.9x | | | | | | 16.7x | | |
| | | |
Implied Equity Value Per
Share of Qorvo Stock |
| |||
|
2026E EV/EBITDA
|
| | | $ | 88.15 – $108.78 | | |
|
2026E P/E
|
| | | $ | 93.77 – $122.62 | | |
|
Company
|
| |
CY 2026E
EV/EBTIDA |
| |
CY 2026E
P/E |
| ||||||
|
Cirrus Logic, Inc.
|
| | | | 9.8x | | | | | | 17.5x | | |
|
Murata Manufacturing Co., Ltd.
|
| | | | 10.1x | | | | | | 22.4x | | |
|
Qorvo
|
| | | | 10.0x | | | | | | 13.4x | | |
|
Qualcomm Incorporated
|
| | | | 11.6x | | | | | | 13.8x | | |
|
Skyworks
|
| | | | 11.9x | | | | | | 16.7x | | |
| | | |
Implied Equity Value Per
Share of Qorvo Stock |
| |||
|
2026E EV/EBITDA
|
| | | $ | 67.80 – $82.32 | | |
|
2026E P/E
|
| | | $ | 59.29 – $77.53 | | |
|
Valuation Metric
|
| |
Implied Cash-
Adjusted Exchange Ratio |
|
|
Selected Trading Company Analysis (CY 2026E Enterprise Value/EBITDA)
|
| |
0.676x to 1.125x
|
|
|
Selected Trading Company Analysis (CY 2026E Price/Earnings)
|
| |
0.790x to 1.520x
|
|
|
Discounted Cash Flow Analysis
|
| |
0.630x to 1.118x
|
|
|
Executive Officers(2)
|
| |
Cash
($) |
| |
Equity(1)
($) |
| |
Perquisites/
Benefits ($) |
| |
Tax
Reimbursement ($) |
| |
Other
|
| |
Total
($) |
| ||||||||||||||||||
|
Philip Brace
|
| | | | — | | | | | $ | 8,295,943 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 8,295,943 | | |
|
Philip Carter, CFO
|
| | | | — | | | | | $ | 4,921,685 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 4,921,685 | | |
|
Reza Kasnavi, EVP, Chief Operations and
Technology Officer |
| | | | — | | | | | $ | 8,321,695 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 8,321,695 | | |
|
Robert J. Terry, SVP, General Counsel and
Secretary |
| | | | — | | | | | $ | 6,463,871 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 6,463,871 | | |
|
All Other Executive Officers as a Group (1 Executive Officers)
|
| | | | — | | | | | $ | 4,655,348 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 4,655,348 | | |
|
Non-Employee Directors as a Group (8 Non-Employee Directors)
|
| | | | — | | | | | $ | 3,293,886 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 3,293,886 | | |
|
Name and Addresses of Beneficial Owners(1)
|
| |
Number of Shares
Beneficially Owned(2) |
| |
Percent of
Class (%) |
| ||||||
| 5% or More Beneficial Owners | | | | | | | | | | | | | |
|
The Vanguard Group, Inc.(3)
|
| | | | 20,714,323 | | | | | | 13.8 | | |
|
BlackRock, Inc.(4)
|
| | | | 16,885,842 | | | | | | 11.3 | | |
|
Pzena Investment Management LLC(5)
|
| | | | 12,321,597 | | | | | | 8.2 | | |
| Directors and Named Executive Officers | | | | | | | | | | | | | |
|
Alan S. Batey
|
| | | | 11,995 | | | | | | * | | |
|
Kevin L. Beebe
|
| | | | 53,005 | | | | | | * | | |
|
Carlos S. Bori
|
| | | | 45,948(6)(7) | | | | | | * | | |
|
Philip G. Brace
|
| | | | 17,249 | | | | | | * | | |
|
Philip Carter
|
| | | | 606(7) | | | | | | * | | |
|
Karilee A. Durham
|
| | | | 34,168 | | | | | | * | | |
|
Liam K. Griffin
|
| | | | 211,585(6)(7) | | | | | | * | | |
|
Eric J. Guerin
|
| | | | 7,590 | | | | | | * | | |
|
Reza Kasnavi
|
| | | | 27,334(7) | | | | | | * | | |
|
Christine King
|
| | | | 25,329 | | | | | | * | | |
|
Suzanne E. McBride
|
| | | | 7,598 | | | | | | * | | |
|
David P. McGlade
|
| | | | 47,266 | | | | | | * | | |
|
Robert A. Schriesheim
|
| | | | 63,153 | | | | | | * | | |
|
Kris Sennesael
|
| | | | 117,175(6) | | | | | | * | | |
|
Robert J. Terry
|
| | | | 23,101(7) | | | | | | * | | |
|
Maryann Turcke
|
| | | | 5,735 | | | | | | * | | |
|
All current directors and executive officers as a group (13 persons)(8)
|
| | | | 321,726 | | | | | | * | | |
|
Name
|
| |
Number of
Accelerated Qorvo RSUs(1) (#) |
| |
Merger
Consideration for Accelerated Qorvo RSUs(2) ($) |
| |
Number of
Unvested Qorvo RSU Awards(3) (#) |
| |
Value of
Unvested Qorvo RSU Awards(4) ($) |
| |
Total Value of
Accelerated and Unvested RSU Awards(5) ($) |
| |||||||||||||||
|
Robert A. Bruggeworth, President and Chief
Executive Officer |
| | | | 84,676 | | | | | $ | 7,917,368 | | | | | | 184,610 | | | | | $ | 17,261,361 | | | | | $ | 25,178,729 | | |
|
Grant A. Brown, Senior Vice President and Chief Financial Officer
|
| | | | 22,794 | | | | | $ | 2,131,278 | | | | | | 49,941 | | | | | $ | 4,669,610 | | | | | $ | 6,800,888 | | |
|
Philip Chesley, Senior Vice President and President of High Performance Analog
|
| | | | 15,769 | | | | | $ | 1,474,393 | | | | | | 34,326 | | | | | $ | 3,209,560 | | | | | $ | 4,683,953 | | |
|
Steven E. Creviston, Senior Vice President and President of Connectivity and
Sensors |
| | | | 18,135 | | | | | $ | 1,695,685 | | | | | | 39,474 | | | | | $ | 3,690,933 | | | | | $ | 5,386,618 | | |
|
Paul J. Fego, Senior Vice President of Global
Operations |
| | | | 20,965 | | | | | $ | 1,960,243 | | | | | | 45,940 | | | | | $ | 4,295,437 | | | | | $ | 6,255,679 | | |
|
All Other Executive Officers as a Group (Two Executive Officers)
|
| | | | 16,485 | | | | | $ | 1,541,407 | | | | | | 36,212 | | | | | $ | 3,385,884 | | | | | $ | 4,927,291 | | |
|
Non-Employee Directors as a Group (Nine Non-Employee Directors)
|
| | | | 22,464 | | | | | $ | 2,100,429 | | | | | | — | | | | | | — | | | | | | — | | |
|
Executive Officers
|
| |
Cash(1)
($) |
| |
Equity(2)
($) |
| |
Pension/
NQDC(3) ($) |
| |
Perquisites/
Benefits(4) ($) |
| |
Tax
Reimbursement(5) ($) |
| |
Total
($) |
| ||||||||||||||||||
|
Robert A. Bruggeworth, President and Chief Executive Officer
|
| | | $ | 6,535,370 | | | | | $ | 25,178,729 | | | | | | — | | | | | $ | 23,922 | | | | | $ | 18,504 | | | | | $ | 32,294,193 | | |
|
Grant A. Brown, Senior Vice President and Chief Financial Officer
|
| | | $ | 3,828,358 | | | | | $ | 6,800,888 | | | | | $ | 478,176 | | | | | $ | 47,556 | | | | | $ | 36,774 | | | | | $ | 11,331,472 | | |
|
Philip Chesley, Senior Vice President and President of High Performance Analog
|
| | | $ | 1,808,338 | | | | | $ | 4,683,953 | | | | | | — | | | | | $ | 23,922 | | | | | $ | 18,504 | | | | | $ | 6,635,374 | | |
|
Steven E. Creviston, Senior
Vice President and President of Connectivity and Sensors |
| | | $ | 2,086,994 | | | | | $ | 5,386,618 | | | | | | — | | | | | $ | 29,610 | | | | | $ | 22,896 | | | | | $ | 7,641,906 | | |
|
Paul J. Fego, Senior Vice President of Global Operations
|
| | | $ | 1,888,741 | | | | | $ | 6,255,679 | | | | | | — | | | | | $ | 23,724 | | | | | $ | 18,342 | | | | | $ | 8,312,431 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Executive Officers
|
| |
Base Salary
($) |
| |
Bonus
($) |
| |
Pro Rata
2026 Bonus ($) |
| |
Executive
Retention Award ($) |
| |
Total
($) |
| |||||||||||||||
|
Robert A. Bruggeworth, President and Chief Executive Officer
|
| | | $ | 2,132,496 | | | | | $ | 3,411,994 | | | | | $ | 990,880 | | | | | | — | | | | | $ | 6,535,370 | | |
|
Grant A. Brown, Senior Vice President and
Chief Financial Officer |
| | | $ | 1,314,968 | | | | | $ | 1,183,471 | | | | | $ | 343,693 | | | | | $ | 986,226 | | | | | $ | 3,828,358 | | |
|
Philip Chesley, Senior Vice President and President of High Performance Analog
|
| | | $ | 804,245 | | | | | $ | 723,830 | | | | | $ | 280,274 | | | | | | — | | | | | $ | 1,808,338 | | |
|
Steven E. Creviston, Senior Vice President and President of Connectivity and Sensors
|
| | | $ | 928,175 | | | | | $ | 835,357 | | | | | $ | 323,462 | | | | | | — | | | | | $ | 2,086,994 | | |
|
Paul J. Fego, Senior Vice President of Global Operations
|
| | | $ | 840,003 | | | | | $ | 756,003 | | | | | $ | 292,735 | | | | | | — | | | | | $ | 1,888,741 | | |
|
Executive Officers
|
| |
Number of
Shares of Qorvo Common Stock Subject to Accelerated Qorvo RSUs (#) |
| |
Aggregate
Value of Accelerated Qorvo RSUs ($) |
| |
Total Number of
Unvested Qorvo RSU Awards (#) |
| |
Aggregate
Value of Unvested Qorvo RSU Awards ($) |
| |
Total Value
of (i) Accelerated Qorvo RSUs and (ii) Unvested Qorvo RSU Awards ($) |
| |||||||||||||||
|
Robert A. Bruggeworth,
President and Chief Executive Officer |
| | | | 84,676 | | | | | $ | 7,917,368 | | | | | | 184,610 | | | | | $ | 17,261,361 | | | | | $ | 25,178,729 | | |
|
Grant A. Brown, Senior Vice
President and Chief Financial Officer |
| | | | 22,794 | | | | | $ | 2,131,278 | | | | | | 49,941 | | | | | $ | 4,669,610 | | | | | $ | 6,800,888 | | |
|
Philip Chesley, Senior Vice President and President of High Performance Analog
|
| | | | 15,769 | | | | | $ | 1,474,393 | | | | | | 34,326 | | | | | $ | 3,209,560 | | | | | $ | 4,683,953 | | |
|
Steven E. Creviston, Senior Vice
President and President of Connectivity and Sensors |
| | | | 18,135 | | | | | $ | 1,695,685 | | | | | | 39,474 | | | | | $ | 3,690,933 | | | | | $ | 5,386,618 | | |
|
Paul J. Fego, Senior Vice President of Global Operations
|
| | | | 20,965 | | | | | $ | 1,960,243 | | | | | | 45,940 | | | | | $ | 4,295,437 | | | | | $ | 6,255,679 | | |
| | | |
Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
|
|
Authorized Capital Stock
|
| | The authorized capital stock of Skyworks consists of five hundred twenty-five million (525,000,000) shares of Skyworks Common Stock, and twenty-five million (25,000,000) shares of preferred stock, without par value. | | | The authorized capital stock of Qorvo consists of four hundred five million (405,000,000) shares of Qorvo Common Stock, and five million (5,000,000) shares of preferred stock, par value $0.0001 per share. | |
|
Special Meetings of Stockholders
|
| | The Skyworks Bylaws provide that a special meeting of stockholders may be called by the Skyworks Board pursuant to a resolution adopted by a majority of the whole Skyworks Board. A special meeting of stockholders shall be called by the secretary of Skyworks upon written request to the secretary by one (1) or more stockholders representing in the aggregate at least 25% of the outstanding shares of Skyworks Common Stock, and who have complied in full with the requirements set forth in the Skyworks Bylaws. | | | Qorvo’s third amended and restated bylaws provide that special meetings of Qorvo stockholders may be called only (a) at any time by the Qorvo Board, or (b) upon written request delivered to the secretary at Qorvo’s principal executive offices, signed and dated by one or more stockholders of record, or beneficial owners, if any, of Qorvo who own not less than 25% of the voting power of the outstanding shares of Qorvo Common Stock entitled to vote on each of the matters proposed to be considered at such special meeting. | |
|
Stockholder Proposals and Nominations of Candidates for Election to the Board of Directors
|
| | The Skyworks Bylaws allow stockholders to propose business to be brought before an annual meeting and allow stockholders who are record holders on the date of notice and on the record date for the determination of stockholders entitled to vote at such annual meeting to nominate candidates for election to the | | | Qorvo’s third amended and restated bylaws allow stockholders to propose business to be brought before an annual meeting and allow stockholders who are record holders at the time of notice and at the time of the annual meeting for the determination of stockholders entitled to vote at such annual | |
| | | |
Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
|
| | | |
Skyworks Board.
Such proposals (other than proposals included in the notice of meeting pursuant to Rule 14a-8 promulgated under the Exchange Act) and nominations, however, may only be brought by a stockholder who has given timely notice in proper written form to Skyworks’ secretary prior to the meeting.
In connection with an annual meeting, to be timely, notice of such proposals and nominations must be delivered to the Skyworks secretary at the principal executive offices not later than the close of business on the ninetieth (90th) day nor earlier than the close of business on the one hundred twentieth (120th) day prior to the first (1st) anniversary of the preceding year’s annual meeting; provided, however, that in the event that the date of the meeting is more than thirty (30) days before or after such anniversary date, notice by the stockholder must be delivered not earlier than the close of business on the one hundred twenty (120) days prior to such annual meeting and not later than the close of business on the later of the ninetieth (90th) day prior to such annual meeting or the tenth (10th) day following the day on which public announcement of the date of the annual meeting was made by Skyworks.
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| |
meeting to nominate candidates for election to the Qorvo Board.
Such proposals (other than proposals included in the notice of meeting pursuant to Rule 14a-8 promulgated under the Exchange Act) and nominations, however, may only be brought by a stockholder who has given timely notice in proper written form to Qorvo’s secretary prior to the meeting.
In connection with an annual meeting, to be timely, notice of such proposals and nominations must be delivered to Qorvo’s secretary at the principal executive offices not earlier than the close of business on the one hundred fiftieth (150th) day and not later than the close of business on the one hundred twentieth (120th) prior to the first anniversary of prior year’s annual stockholder meeting; provided, however, that if no annual meeting was held the previous year or the date of the annual meeting is more than thirty (30) days before or more than seventy (70) days after the anniversary of the preceding annual meeting, notice must be received not earlier than the close of business on the 150th day prior to the date of such annual meeting and not later than the close of business on the later of (x) the 120th day prior to the date of such annual meeting or (y) the tenth (10th) day following the day on which public announcement of the date of such meeting is first made by Qorvo.
|
|
|
Number of Directors
|
| | The Skyworks Bylaws provide that the number of directors will be fixed from time to time exclusively by the board of directors pursuant to a resolution adopted by a majority of the whole Skyworks Board. At | | | Qorvo’s third amended and restated bylaws provide that the number of directors may be set by resolution duly adopted by the Qorvo Board, or by an amendment to the bylaws duly adopted by the Qorvo Board or | |
| | | |
Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
|
| | | | present, Skyworks has nine (9) directors. | | | by the stockholders, or by a duly adopted amendment to the certificate of incorporation. At present, Qorvo has ten (10) directors. | |
|
Election of Directors
|
| |
The Skyworks Bylaws provide that other than in a contested election, at each meeting of the stockholders for the election of directors at which a quorum is present, a nominee for election as a director at such meeting shall be elected to the Skyworks Board if the votes cast “for” such nominee’s election exceed the votes cast “against” such nominee’s election (with “abstentions” and “broker non-votes” not counted as votes “for” or “against” such nominee’s election).
In the event of a contested election at which a quorum is present, the directors shall be elected by a plurality vote of all votes cast for the election of directors at such contested election. If directors are to be elected by a plurality of the votes cast, stockholders shall not be permitted to vote against a nominee.
Skyworks does not have a classified board and each director is elected annually.
|
| |
Qorvo’s third amended and restated bylaws provide that each director shall be elected by the vote of the majority of votes cast with respect to the nominee at any meeting for the election of directors at which a quorum is present; provided that if (a) Qorvo’s secretary receives a notice that a stockholder has nominated a person for election to the board of directors and (b) such nomination has not been withdrawn by such stockholder on or before the date Qorvo files its definitive proxy statement with the SEC such that the number of nominees exceeds the number of directors to be elected, the directors shall be elected by the vote of a plurality of the votes cast.
Qorvo does not have a classified board and each director is elected annually.
|
|
|
Removal of Directors
|
| | The Skyworks Bylaws provide that any regular or alternate member of a committee may be removed with or without cause at any time by resolution passed by a majority of the whole Skyworks Board at any regular or special meeting. | | | Qorvo’s third amended and restated bylaws provide that any director may be removed, with or without cause, by the holders of a majority in voting power of the outstanding shares then entitled to vote for the election of such director. No reduction of the authorized number of directors shall have the effect of removing any director prior to the expiration of such director’s term of office. | |
|
Limitation on Liability of Directors
|
| | The Skyworks Certificate of Incorporation provides that no director of Skyworks shall be | | | Qorvo’s amended and restated certificate of incorporation, as amended, provides that, to the | |
| | | |
Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
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| | | |
liable to Skyworks or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability (a) for any breach of the director’s duty of loyalty to Skyworks or its stockholders, (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, (c) under Section 174 of the DGCL or (d) for any transaction from which the director derived an improper personal benefit.
The DGCL provides that a corporation may limit or eliminate the personal liability of a director or officer to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer; provided that such provision shall not eliminate liability for: (a) any breach of the director’s or officer’s duty of loyalty to the corporation or its stockholders; (b) acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law; (c) a director under Section 174 of the DGCL; (d) any transaction from which the director or officer derived an improper personal benefit; and (e) an officer in any action by or in the right of the corporation.
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| |
fullest extent permitted by the DGCL, no director of Qorvo shall be personally liable to Qorvo or its stockholders for monetary damages for breach of fiduciary duty as a director.
The DGCL provides that a corporation may limit or eliminate the personal liability of a director or officer to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer; provided that such provision shall not eliminate liability for: (a) any breach of the director’s or officer’s duty of loyalty to the corporation or its stockholders; (b) acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law; (c) a director under Section 174 of the DGCL; (d) any transaction from which the director or officer derived an improper personal benefit; and (e) an officer in any action by or in the right of the corporation.
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|
Indemnification of Directors and Officers
|
| | The Skyworks Bylaws provide that Skyworks shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason of the fact that such person is or was a director or officer of Skyworks or any of its majority-owned subsidiaries or, while such a director or officer, is or was serving at the request of Skyworks as a director, officer, | | | Qorvo’s third amended and restated bylaws provide that, to the maximum extent and in the manner permitted by the DGCL, Qorvo will indemnify any person against expenses, liabilities and losses actually and reasonably incurred in connection with any threatened, pending or completed action, suit or proceeding in which such person was or is a party or is threatened to be made a party by reason of the fact that such person is or was a director | |
| | | |
Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
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| | | |
employee or agent. No indemnification shall be made in respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to Skyworks unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.
No indemnification shall be payable with respect to any action against Skyworks commenced by any person unless the Skyworks Board shall have authorized the commencement thereof or unless and to the extent that the Skyworks Bylaws specifically provide for indemnification of expenses relating to the enforcement of rights.
Expenses incurred in defending certain civil, criminal, administrative or investigative action, suit or proceedings shall be paid by Skyworks in advance of the final disposition of such action, suit or proceeding to a present or former director or officer of Skyworks, promptly after receipt of a request therefor stating in reasonable detail the expenses incurred, and to a person who is not a present or former director or officer of Skyworks as authorized by the chief executive officer of Skyworks or such other officer of Skyworks as shall be designated from time to time by the Skyworks Board; provided that in each case Skyworks shall have received an undertaking by or on
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or officer of Qorvo.
Qorvo must indemnify a director or officer in connection with an action, suit, or proceeding (or part thereof) initiated by such director or officer only if the initiation of such action, suit or proceeding (or part thereof) by the director or officer was authorized in the specific case by the Qorvo Board.
The DGCL provides that a corporation may indemnify any person who was or is a director, officer, employee or agent of the corporation if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person’s conduct was unlawful. No indemnification shall be made in respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.
The DGCL also provides that to the extent a present or former director or officer of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding, or in defense of any claim, issue or matter therein, such person shall be indemnified against expenses actually and
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| | | |
Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
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behalf of the claimant to repay such amount if it shall ultimately be determined that such person is not entitled to be indemnified by Skyworks.
The DGCL provides that a corporation may indemnify any person who was or is a director, officer, employee or agent of the corporation if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person’s conduct was unlawful. No indemnification shall be made in respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.
The DGCL also provides that to the extent a present or former director or officer of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding, or in defense of any claim, issue or matter therein, such person shall be indemnified against expenses actually and reasonably incurred by such person in connection therewith.
The Skyworks Bylaws permit Skyworks to purchase and maintain insurance on behalf of any person who is or was a
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reasonably incurred by such person in connection therewith.
Qorvo must advance to any director or officer eligible for indemnification, prior to the final disposition of the proceeding, all expenses reasonably incurred by any such director or officer in connection with defending such proceeding, upon receipt of a request therefor and an undertaking by or on behalf of such person to repay such amounts if it should be determined ultimately that such person is not entitled to be indemnified.
Qorvo’s third and amended and restated bylaws permit Qorvo to purchase and maintain insurance on behalf of any person who is or was a director or officer against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not Qorvo would have the power to indemnify him or her against such liability under the provisions of the DGCL.
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Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
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| | | | director, officer, employee or agent of Skyworks against any liability asserted against such person and incurred by such person in any such capacity, or arising out of such person’s status as such, whether or not Skyworks would have the power or the obligation to indemnify such person against such liability. | | | | |
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Amendments to Certificate of Incorporation
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| |
The Skyworks Certificate of Incorporation provides that Skyworks reserves the right to amend, alter, or repeal any provision contained in the certificate of incorporation by the DGCL.
The DGCL provides that no meeting or vote of stockholders shall be required to adopt an amendment that only (a) changes its corporate name; (b) deletes such provisions of the original certificate of incorporation which named the incorporator or incorporators, initial board of directors, and original subscribers for shares; or (c) deletes such provisions contained in any amendment to the certificate of incorporation as were necessary to affect a change, exchange, reclassification, subdivision, combination or cancellation of stock which has now become effective. Otherwise, the Skyworks Board must adopt a resolution setting forth the amendment proposed and the amendment must be approved by a majority of the outstanding stock of each class entitled to vote thereon as a class.
Notwithstanding the above provisions, the Skyworks Certificate of Incorporation provides that the affirmative vote of the holders of at least the following percentage of all classes of stock entitled to vote for the election of directors shall be
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Qorvo’s amended and restated certificate of incorporation, as amended, provides that Qorvo reserves the right to amend, alter, change or repeal any provision contained in its certificate of incorporation, in the manner now or hereafter prescribed by the DGCL.
The DGCL provides that no meeting or vote of stockholders shall be required to adopt an amendment that only (a) changes its corporate name; (b) deletes such provisions of the original certificate of incorporation which named the incorporator or incorporators, initial board of directors, and original subscribers for shares; or (c) deletes such provisions contained in any amendment to the certificate of incorporation as were necessary to affect a change, exchange, reclassification, subdivision, combination or cancellation of stock which has now become effective. Otherwise, the Qorvo Board of directors must adopt a resolution setting forth the amendment proposed and the amendment must be approved by a majority of the outstanding stock of each class entitled to vote thereon as a class.
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Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
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| | | | required to amend any provisions inconsistent with the indicated provisions of the Skyworks Certificate of Incorporation: (a) 80% in the case of Article Seventh (number of directors, election of directors, vacancies on the board, removal of directors) or Article Thirteenth (annual or special meeting requirement), and (b) 90% in the case of Article Twelfth (business combinations). | | | | |
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Amendments to Bylaws
|
| |
The Skyworks Certificate of Incorporation provides that the Skyworks Board is expressly authorized to adopt, alter, amend and repeal the bylaws of Skyworks, in any manner not inconsistent with the laws of the State of Delaware or the Skyworks Certificate of Incorporation, subject to the power of the holders of capital stock of Skyworks to adopt, alter or repeal the Skyworks Bylaws made by the Skyworks Board; provided that any such adoption, amendment, or repeal by stockholders shall require the affirmative vote of the holders of at least a majority of the shares of all classes of stock of Skyworks entitled to vote for the election of directors.
The DGCL generally provides that after a corporation has received any payment for any of its stock, the power to adopt, amend, or repeal bylaws shall be in the stockholders entitled to vote. Any corporation may, in its certificate of incorporation, confer the power to adopt, amend or repeal bylaws upon the directors. The fact that such power has been so conferred upon the directors shall not divest the stockholders of the power, not limit their power to adopt, amend or repeal bylaws.
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Qorvo’s third amended and restated bylaws provide that the bylaws may be adopted, amended, or repealed by the affirmative vote of the holders of a majority in voting power of the stock issued and outstanding and entitled to vote at meetings of stockholders as of the record date; provided, however, that Qorvo may, in its certificate of incorporation, confer the power to adopt, amend, or repeal bylaws upon the directors.
The DGCL generally provides that after a corporation has received any payment for any of its stock, the power to adopt, amend, or repeal bylaws shall be in the stockholders entitled to vote. Any corporation may, in its certificate of incorporation, confer the power to adopt, amend or repeal bylaws upon the directors. The fact that such power has been so conferred upon the directors shall not divest the stockholders of the power, not limit their power to adopt, amend or repeal bylaws.
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Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
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Certain Business Combinations
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The DGCL provides that Skyworks may not engage in any business combination with any interested stockholder (i.e., any person that is the owner of 15% or more of the outstanding voting stock of the corporation) for a period of three (3) years following the time that such stockholder became an interested stockholder, unless (a) prior to such time the Skyworks Board approved either the business combination or transaction which resulted in the stockholder becoming an interested stockholder, (b) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of Skyworks outstanding at the time the transaction commenced, or (c) at or subsequent to such time the business combination is approved by the Skyworks Board, and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 2/3rds of the outstanding voting stock which is not owned by the interested stockholder.
The Skyworks Certificate of Incorporation provides that certain transactions between Skyworks and a beneficial owner of more than 20% of the voting power of the outstanding Skyworks voting stock requires the affirmative vote of the holders of 90% of all voting stock of Skyworks, voting together as a single class.
The transactions covered by such provisions of the Skyworks Certificate of Incorporation include (a) any merger or consolidation of Skyworks or any
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The DGCL provides that Qorvo may not engage in any business combination with any interested stockholder (i.e., any person that is the owner of 15% or more of the outstanding voting stock of the corporation) for a period of three (3) years following the time that such stockholder became an interested stockholder, unless (a) prior to such time the Qorvo Board approved either the business combination or transaction which resulted in the stockholder becoming an interested stockholder, (b) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of Qorvo outstanding at the time the transaction commenced, or (c) at or subsequent to such time the business combination is approved by the Qorvo Board, and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 2/3rds of the outstanding voting stock which is not owned by the interested stockholder.
Qorvo’s amended and restated certificate of incorporation, as amended, does not contain any provision electing not to be governed by these anti-takeover provisions of the DGCL.
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Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
|
| | | | subsidiary with (i) any such beneficial owner, or (ii) any other corporation (whether or not itself such beneficial owner) which is, or after such merger or consolidation would be, an affiliate of a such beneficial owner; (b) any sale, lease, exchange, mortgage, pledge, transfer or other disposition to or with such beneficial owner or any affiliate of such beneficial owner of any assets of Skyworks or any subsidiary having an aggregate fair market value of $500,000 or more; (c) the issuance or transfer by Skyworks or any subsidiary of any of its or their respective securities in exchange to such beneficial owner or any affiliate of such beneficial owner for cash, securities or other property having an aggregate fair market value of $500,000 or more; (d) the adoption of any plan or proposal for the liquidation or dissolution of Skyworks proposed by such beneficial owner or any affiliate of such beneficial owner; and (e) any reclassification or securities or recapitalization of Skyworks that has the effect, directly or indirectly, of increasing the proportionate share of the outstanding shares of any class of equity or convertible securities of Skyworks or any subsidiary that is owned by such beneficial owner or any affiliate of such beneficial owner. | | | | |
|
Stockholder Rights Plan
|
| | Skyworks does not have a stockholder rights plan. | | | Qorvo does not have a stockholder rights plan. | |
|
Exclusive Forum
|
| | The Skyworks Bylaws provide that, unless Skyworks consents in writing to the selection of an alternative forum, the Court of Chancery (or, if the Court of Chancery does not have jurisdiction, the federal district court for the District of Delaware) shall, to the fullest extent permitted by the law, be | | | Qorvo’s third amended and restated bylaws provide that, unless Qorvo consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall, to the full extent permitted by the law, be the sole and exclusive forum for (a) any derivative action or proceeding brought on behalf of | |
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Rights of Skyworks
Stockholders |
| |
Rights of Qorvo
Stockholders |
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the sole and exclusive forum for (a) any derivative action or proceeding brought on behalf of the corporation, (b) any action asserting a claim of breach of a fiduciary duty owed by any current or former director, officer, other employee or stockholder of Skyworks to Skyworks or its stockholders, (c) any action asserting a claim arising pursuant to any provisions of the DGCL or as to which the DGCL confers jurisdiction on the Court of Chancery, or (d) any action asserting a claim arising pursuant to any provision of the Skyworks Certificate of Incorporation or Skyworks Bylaws or governed by the internal affairs doctrine.
Unless Skyworks consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any claim arising under the Securities Act.
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| | the corporation, (b) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, other employee or stockholder of the corporation to the corporation or its stockholders, (c) any action asserting a claim arising pursuant to any provisions of the DGCL, the certificate of incorporation or Qorvo’s bylaws, or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware, or (d) any action asserting a claim governed by the internal affairs doctrine. | |
| |
By Mail:
Attention: Secretary
Skyworks Solutions, Inc. 5260 California Avenue Irvine, California 92617 Telephone: (949) 231-3000 |
| |
By Mail:
Attention: General Counsel
Qorvo, Inc. 7628 Thorndike Road Greensboro, North Carolina 27409 Telephone: (336) 664-1233 |
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| |
For Skyworks Stockholders:
D.F. King & Co., Inc. 28 Liberty St, 53rd floor New York, NY 10005 Stockholders may call toll-free: +1 (866) 416-0577 Banks and brokers may call collect: +1 (212)-434-0035 |
| |
For Qorvo Stockholders:
Innisfree M&A Incorporated 501 Madison Avenue, 20th Floor New York, NY 10022 Stockholders may call toll free: +1 (877) 750-9499 Banks and Brokers may call collect: +1 (212) 750-5833 |
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Page
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ARTICLE I
THE MERGERS
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| | | | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-3 | | | |
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ARTICLE II
CERTAIN GOVERNANCE MATTERS
|
| | | | | | |
| | | | | A-3 | | | |
| | | | | A-3 | | | |
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ARTICLE III
EFFECT OF THE MERGERS ON THE CAPITAL STOCK;
EXCHANGE OF CERTIFICATES |
| | | | | | |
| | | | | A-4 | | | |
| | | | | A-5 | | | |
| | | | | A-7 | | | |
| | | | | A-9 | | | |
| | | | | A-10 | | | |
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ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF QORVO
|
| | | | | | |
| | | | | A-10 | | | |
| | | | | A-11 | | | |
| | | | | A-11 | | | |
| | | | | A-13 | | | |
| | | | | A-13 | | | |
| | | | | A-15 | | | |
| | | | | A-15 | | | |
| | | | | A-15 | | | |
| | | | | A-16 | | | |
| | | | | A-16 | | | |
| | | | | A-18 | | | |
| | | | | A-18 | | | |
| | | | | A-19 | | | |
| | | | | A-20 | | | |
| | | | | A-20 | | | |
| | | | | A-23 | | | |
| | | | | A-24 | | | |
| | | | | A-24 | | | |
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Page
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| | | | | A-26 | | | |
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ARTICLE V
REPRESENTATIONS AND WARRANTIES OF SKYWORKS
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ARTICLE VI
INTERIM OPERATIONS
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ARTICLE VII
COVENANTS
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ARTICLE VIII
CONDITIONS TO THE MERGERS
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ARTICLE IX
TERMINATION
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ARTICLE X
MISCELLANEOUS
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| | Borrower: | | | Skyworks Solutions, Inc., a Delaware corporation (the “Company”). | |
| | Administrative Agent: | | | Goldman Sachs Bank USA (“Goldman Sachs”) will act as sole administrative agent (in such capacity, the “Administrative Agent”) for a syndicate of banks, financial institutions and other institutional lenders (together with Goldman Sachs, collectively, the “Lenders”), and will have the authority and perform the functions customarily associated with such role. | |
| | Sole Lead Arranger and Sole Bookrunner: | | | Goldman Sachs will act as sole lead arranger and sole bookrunner for the Bridge Facility (in such capacities, the “Arranger”), and will have the authority and perform the functions customarily associated with such roles. | |
| | Bridge Facility: | | | A senior unsecured bridge loan facility in an aggregate principal amount of US$3,050,000,000 (the “Bridge Facility”), consisting of two tranches: (a) a US$1,500,000,000 tranche of senior unsecured bridge loans (the “Merger Tranche”) and (b) a US$1,550,000,000 tranche of senior unsecured bridge loans (the “Qorvo Notes Tranche” and, together with the Merger Tranche, the “Tranches”), less, in the case of each Tranche, the amount of any applicable reduction to the commitments under the Bridge Facility with respect to such Tranche as set forth under the “Mandatory Commitment Reductions/Prepayments” section below. Loans under the Bridge Facility will be available in U.S. dollars. | |
| | Purpose: | | | The proceeds of the loans under the Merger Tranche, together with the proceeds of the issuance and sale of any Senior Notes and cash on hand of the Company, Qorvo and their respective subsidiaries, will be used by the Company solely (a) to pay the cash consideration for the Merger, (b) to finance the Qorvo Credit Agreement Refinancing and (c) to pay fees, costs and expenses incurred in connection with the Transactions (including any exchange offers and/or consent solicitations in respect of any Outstanding Qorvo Notes). | |
| | | | | The proceeds of the loans under the Qorvo Notes Tranche will be used, in the event that a Change of Control Triggering Event occurs in respect of any Affected Series at or prior to the time the Merger is consummated, to finance the Qorvo Notes Refinancing. | |
| | Closing Date: | | |
The date, on or before the Commitment Termination Date (as defined below), on which the borrowing under the Bridge Facility is made and the Merger is consummated (such date, the “Closing Date”).
“Commitment Termination Date” means the earliest to occur of (a) five business days after the Outside Date (as defined in Section 9.1(b) of the Merger Agreement as in effect on the date of the Commitment Letter (but without giving effect to the text “, or such other date agreed in
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| | | | | writing by Skyworks and Qorvo” set forth therein), as the Outside Date may be extended pursuant to clauses (i), (ii) and (iii) of the proviso to Section 9.1(b) of the Merger Agreement as in effect on the date of the Commitment Letter)), (b) the date of the consummation of the Merger, effective immediately following such consummation, with or without the use of any portion of the Bridge Facility, and (c) the valid termination of the Merger Agreement in accordance with the terms thereof (and the Company hereby agrees to notify the Administrative Agent promptly thereof). | |
| | Availability: | | | Each Tranche will be available in a single drawing on the Closing Date (provided that the aggregate principal amount borrowed under the Qorvo Notes Tranche on Closing Date may not exceed the lesser of (a) the aggregate amount required to be paid by the Company (or Qorvo) pursuant to the Qorvo Notes Refinancing and (b) the aggregate amount of the Qorvo Notes Tranche on the Closing Date). Borrowings under the Bridge Facility shall be allocated as between the Tranches in such manner as may be determined by the Company. Amounts borrowed under either Tranche that are repaid or prepaid may not be reborrowed. On the Closing Date, any undrawn commitments under either Tranche shall automatically terminate. | |
| | Interest Rates and Fees: | | | As set forth on Schedule I hereto. | |
| | Final Maturity and Amortization: | | | The Bridge Facility will mature on the date that is 364 days after the Closing Date. Loans under the Bridge Facility will not require scheduled amortization. | |
| | Voluntary Commitment Reductions/Prepayments: | | | Voluntary reductions of the unutilized portion of the commitments under the Bridge Facility and prepayments of borrowings thereunder will be permitted at any time and from time to time, and will be without premium or penalty (with (x) any such reduction being allocated as between Tranches in such manner as may be determined by the Company and (y) any such prepayment being allocated as between Tranches ratably (or in such other manner as may be agreed by the Company and the Arranger), and shall be applied ratably to the commitments or loans of each Lender under the applicable Tranche), subject to reimbursement of the Lenders’ redeployment costs in the case of a prepayment of Term SOFR borrowings other than on the last day of the relevant interest period. | |
| | Mandatory Commitment Reductions/Prepayments: | | |
On or prior to the Closing Date, the aggregate commitments in respect of the Bridge Facility under the Commitment Letter or under the Bridge Credit Agreement (as defined below), as applicable, shall be automatically permanently reduced and, after the funding of the Bridge Facility on the Closing Date, loans under the Bridge Facility shall be prepaid, in each case, by the following amounts:
(a) 100% of the committed amount of any Qualifying Loan Facility (as defined below) entered into after the date of the Commitment Letter;
(b) without duplication of clause (a) above, 100% of the Net Cash Proceeds (as defined below) received by the Company or any of its subsidiaries after the date of the Commitment Letter from the issuance and sale of any Senior Notes or any other debt securities (including any debt securities convertible or exchangeable into equity securities or
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hybrid debt-equity securities) or incurrence of any other debt for borrowed money, other than (i) the Bridge Facility, (ii) revolving borrowings under the Existing Credit Agreement (as defined below), as it may be amended pursuant to the Existing Credit Agreement Amendment; provided that the aggregate principal amount of revolving borrowings outstanding thereunder does not exceed US$1,000,000,000, (iii) intercompany indebtedness among the Company and/or its subsidiaries, (iv) capital leases, letters of credit, foreign subsidiary working capital facilities, purchase money and equipment financings, receivables financings, sale and leaseback arrangements or other similar obligations, in each case, incurred in the ordinary course of business, (v) any indebtedness of the Qorvo Business permitted to be incurred by the Qorvo Business after the date hereof but prior to the Closing Date, or permitted to remain outstanding on the Closing Date, in each case, under the Merger Agreement, (vii) other debt to the extent the net cash proceeds of such debt are utilized to refinance any debt of the Company or its subsidiaries within six months of the maturity thereof and pay any fees or other amounts in respect thereof or otherwise in connection therewith (including any prepayment or redemption premiums and accrued interest thereon) and (vi) other indebtedness in an aggregate principal amount not exceeding US$100,000,000;
(c) 100% of the Net Cash Proceeds received by the Company after the date of the Commitment Letter from the issuance and sale of any equity securities by the Company (including, to the extent not duplicative of clause (b) above, any securities convertible or exchangeable into or exercisable for equity securities or other equity-linked securities), other than (i) issuances pursuant to employee stock plans, compensation plans or other benefit or employee or director incentive arrangements (including, for the avoidance of doubt, employee and director 401(k) plans) and (ii) the Company Equity Consideration and any other equity securities issued or transferred directly (and not constituting cash proceeds of any issuance of such equity securities) as consideration in connection with any acquisition; and
(d) 100% of the Net Cash Proceeds received by the Company or any of its subsidiaries after the date of the Commitment Letter from the sale or other disposition of any property or assets of the Company or any of its subsidiaries (including any sale and leaseback transaction and sales or issuances of equity interests in any subsidiary of the Company, but excluding proceeds of any casualty loss or damage to, or any condemnation of, any property or asset of the Company or any of its subsidiaries) outside the ordinary course of business, including sales or issuances of equity interests in any subsidiary of the Company, other than (i) sales, issuances and other dispositions between or among the Company and its subsidiaries and (ii) sales and other dispositions the Net Cash Proceeds of which do not exceed US$100,000,000 in any transaction or series of related transactions (it being also understood that any casualty loss or damage to, or any condemnation of, any property or asset of the Company or any of its subsidiaries shall not be subject to this clause (d)); provided that if the Company shall have given written notice to the Arranger or, after the Closing Date, the Administrative
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Agent, that the Company or its subsidiaries intend to reinvest such Net Cash Proceeds within 180 days of receipt thereof in long-term assets to be used in the business of the Company and/or its subsidiaries, such Net Cash Proceeds (or the portion thereof specified in such notice) shall not be subject to this clause (d), except if such Net Cash Proceeds are not so reinvested by the end of such 180-day period (or, to the extent committed to be reinvested within such 180-day period, within 270 days of receipt thereof), in which case the portion thereof not so reinvested shall then be subject to the provisions of this clause (d); provided, however, that notwithstanding the foregoing, receipt of such Net Cash Proceeds by any subsidiaries of the Company other than domestic subsidiaries shall not require any reduction of commitments and/or prepayment of loans under the Bridge Facility to the extent such reduction or prepayment (x) would result in material adverse tax consequences or (y) is prohibited, delayed or restricted under applicable law, in each case, as determined by the Company in good faith (which determination shall be conclusive) and notified to the Arranger (if prior to the Closing Date) or the Administrative Agent (if after the Closing Date) on or prior to the date on which such reduction or prepayment would otherwise be required as set forth herein; provided, further, that the Company agrees to use commercially reasonable efforts to overcome any such material adverse tax consequences or restrictions in applicable law.
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“Qualifying Loan Facility” shall mean any credit facility (including any tranche of any credit facility) that is entered into by the Company for the stated purpose of providing financing for the Merger or any portion thereof; provided that the definitive credit or similar agreement with respect thereto has become effective and the conditions precedent to funding thereunder are no less favorable to the Company or are more favorable to the Company than the conditions set forth herein to the funding of the Bridge Facility, as determined in good faith by the Company.
“Net Cash Proceeds” shall mean:
(a) with respect to the issuance, sale or incurrence of debt securities or debt for borrowed money, the excess of (i) cash actually received by the Company or any of its subsidiaries in connection therewith (or for purposes of mandatory reductions of commitments under the Bridge Facility, received into escrow, provided that the conditions to the release thereof from escrow are no less favorable to the Company or are more favorable to the Company than the conditions set forth herein to the funding of the Bridge Facility, as determined in good faith by the Company) over (ii) the underwriting or issuance discounts, commissions, fees and other out-of-pocket expenses incurred by the Company or any of its subsidiaries in connection therewith;
(b) with respect to the issuance and sale of any equity securities of the Company, the excess of (i) the cash actually received by the Company in connection therewith over (ii) the underwriting or issuance discounts, commissions, fees and other out-of-pocket expenses incurred by the Company in connection therewith; and
(c) with respect to a sale or other disposition of any property or assets of the Company or any of its subsidiaries, the excess, if any, of
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(i) the cash actually received by the Company or its subsidiaries in connection therewith (including any cash received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of (A) payments made to retire any indebtedness that is secured by such asset and that is required to be repaid in connection with the sale or other disposition thereof, (B) all fees and out-of-pocket costs and expenses incurred by the Company or any of its subsidiaries in connection therewith (including attorneys’ fees, accountants’ fees, investment banking fees, survey costs, title insurance premiums, and related search and recording charges, other customary expenses and brokerage, consultant and other customary fees actually incurred in connection therewith), (C) taxes reasonably estimated to be payable in connection with such transaction (including sales, use and other transfer taxes, deed or mortgage recording taxes) and (D) the amount of reserves established by the Company or any of its subsidiaries in good faith and pursuant to commercially reasonable practices for adjustment in respect of the sale price of such property or assets in accordance with applicable generally accepted accounting principles or to fund contingent liabilities reasonably estimated to be payable and that are associated with such event, provided that if the amount of such reserves exceeds the required amount thereof, then such excess, upon the determination thereof, shall then constitute Net Cash Proceeds.
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For purposes of determining the amount of any required commitment reduction or prepayment of loans under the Bridge Facility, the U.S. dollar equivalent of any Net Cash Proceeds or, in the case of a Qualifying Loan Facility, commitments denominated in a currency other than US dollars will be determined based on customary exchange rates prevailing at the time of receipt by the Company or its subsidiaries of such Net Cash Proceeds or such commitments.
Any required commitment reduction resulting from any of the foregoing shall be effective on the same day as such Net Cash Proceeds are actually received (or, where applicable, received into escrow) or, in the case of any Qualifying Loan Facility, the date of effectiveness of the definitive credit or similar agreement with respect thereto. Any required prepayment of loans resulting from any of the foregoing shall be made on or prior to the fifth business day after such Net Cash Proceeds are received. The Company shall provide the Administrative Agent with prompt notice of any event giving rise to a requirement for a commitment reduction or prepayment of loans under the Bridge Facility, together with a reasonably detailed calculation of the amount of such reduction or prepayment.
All required commitment reductions and prepayments of loans under the Bridge Facility resulting from the application of clause (a), (b), (c) or (d) of the first paragraph under this “Mandatory Commitment Reductions/Prepayments” section shall be applied (a) prior to the funding of loans under the Bridge Facility, first to commitments under the Merger Tranche and then to commitments under the Qorvo Notes Tranche (provided that any required commitment reductions resulting from the incurrence of any indebtedness for the stated purpose of financing the Qorvo Notes Refinancing will be applied first to commitments under the
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| | | | | Qorvo Notes Tranche and then to commitments under the Merger Tranche) and (b) after the funding of loans under the Bridge Facility, ratably to loans under the Merger Tranche and the Qorvo Notes Tranche. | |
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In addition, in the case of the Qorvo Notes Tranche:
(a)
if a Ratings Decline (as defined in the applicable Qorvo Indenture as in effect on the date of the Commitment Letter) in respect of any series of Outstanding Qorvo Notes has not occurred on or prior to the date that is 60 days after the date of public announcement of the Merger (which 60 days shall be extended, as to any such series, so long as the rating of such series is under publicly announced consideration for possible downgrade by each Rating Agency (as defined in the Qorvo Indentures as in effect on the date of the Commitment Letter)) (the first date after the expiry of such 60-day period, as it may be extended, the “Ratings Test Date”), then the aggregate commitments in respect of the Qorvo Notes Tranche under the Commitment Letter or under the Bridge Credit Agreement, as applicable, shall be automatically permanently reduced dollar-for-dollar by the aggregate principal amount of such Outstanding Qorvo Notes outstanding on the applicable Ratings Test Date (and the Company agrees to notify the Administrative Agent promptly of the occurrence of each Ratings Test Date and whether a Ratings Decline in respect of any Outstanding Qorvo Notes has or has not occurred prior to such date) (such reduction, an “Investment Grade Rating Event Reduction”); and
(b)
the aggregate commitments in respect of the Qorvo Notes Tranche under the Commitment Letter or under the Bridge Credit Agreement, as applicable, shall be automatically and permanently reduced dollar-for-dollar by an amount equal to the principal amount of the Outstanding Qorvo Notes redeemed, repurchased or otherwise repaid after the date of the Commitment Letter (other than with respect to any such Outstanding Qorvo Notes redeemed, repurchased or otherwise repaid with the proceeds of the Qorvo Notes Tranche), effective immediately upon such redemption, repurchase or repayment.
All required commitment reductions and prepayments of loans under the Bridge Facility will be made without premium or penalty, subject to reimbursement of the Lenders’ redeployment costs in the case of a prepayment of Term SOFR borrowings other than on the last day of the relevant interest period, and will be applied ratably to the commitments or loans of each Lender under the applicable Tranche.
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| | Documentation: | | | The Bridge Facility will be documented pursuant to a credit agreement (the “Bridge Credit Agreement”), which will be based upon the Existing Credit Agreement, as in effect on the date of the Commitment Letter, and will incorporate the terms set forth in this Exhibit B (subject to the “market flex” provisions set forth in the Arranger Fee Letter), it being agreed that the Bridge Credit Agreement will reflect modifications (a) to reflect the nature of the Bridge Facility as a bridge facility and not a revolving credit facility and the removal of provisions related to letters of credit, swingline loans, commitment increases and extensions of maturity date, (b) to reflect changes in law or accounting standards since the date | |
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of the Existing Credit Agreement and (c) to reflect the operational and administrative requirements of the Administrative Agent. The Bridge Credit Agreement shall contain (i) only those conditions to borrowing as are expressly set forth in Exhibit C to the Commitment Letter and (ii) only those mandatory commitment reductions or prepayments, representations and warranties, covenants and events of default expressly set forth in this Exhibit B, in each case, applicable to the Company and its subsidiaries (including the Qorvo Business) and with standards, qualifications, thresholds, exceptions, “baskets” and grace and cure periods consistent with the foregoing. The principles set forth in this paragraph are referred to as the “Bridge Documentation Principles”.
“Existing Credit Agreement” means the Revolving Credit Agreement, dated as of May 21, 2021 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time), by and among the Company, the borrowing subsidiaries party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent.
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| | Representations and Warranties: | | | Subject to the Bridge Documentation Principles, consisting solely of the following representations and warranties (and, for the avoidance of doubt, to include the Specified Representations), which shall be with respect to the Company and its subsidiaries (including the Qorvo Business), it being acknowledged and agreed that all the representations and warranties will be made on the Closing Date (after giving effect to the Transactions) but only the accuracy of the Specified Representations and the Merger Agreement Representations shall be a condition to the availability of the Bridge Facility on the Closing Date: organization and powers; authorization and enforceability; governmental approvals and absence of conflicts; financial condition and no material adverse change; litigation and environmental matters; compliance with laws; anti-corruption laws and sanctions; Investment Company Act status; ERISA; taxes; solvency of the Company and its subsidiaries on a consolidated basis after giving effect to the Transactions (solvency to be defined in a manner consistent with Annex I to Exhibit C to the Commitment Letter); disclosure; Federal Reserve regulations; use of proceeds; and affected financial institutions. | |
| | Conditions Precedent to Borrowing: | | | The borrowing under the Bridge Facility will be subject solely to the satisfaction or waiver of the conditions precedent set forth in Exhibit C to the Commitment Letter. | |
| | Affirmative Covenants: | | | Subject to the Bridge Documentation Principles, consisting solely of the following covenants, which shall apply to the Company and its subsidiaries (including the Qorvo Business): delivery of financial statements and other information; notices of default and other material events; existence and conduct of business; payment of taxes; maintenance of properties and rights; insurance; books and records; inspection and audit rights; compliance with laws; and use of proceeds. | |
| | Negative Covenants: | | | Subject to the Bridge Documentation Principles, consisting solely of the following covenants, which shall apply to the Company and its subsidiaries (including the Qorvo Business): subsidiary indebtedness; liens; sale and leaseback transactions; mergers and other fundamental changes; and restrictive agreements. | |
| | Financial Covenant: | | | The Company will not permit the ratio of Consolidated Total Indebtedness (to be defined consistent with the Bridge Documentation Principles) as of the end of any fiscal quarter to Consolidated EBITDA (to be defined consistent with the Bridge Documentation Principles) for the period of four consecutive fiscal quarters then ended to exceed 3.50 to 1.00. | |
| | Events of Default: | | | Subject to the Bridge Documentation Principles, the Bridge Credit Agreement will include only the following events of default, which shall apply with respect to the Company and its subsidiaries (including the Qorvo Business): nonpayment of principal when due; nonpayment of interest or fees or other amounts within five business days of becoming due; violation of covenants (subject to a 30-day grace period for all affirmative covenants other than the affirmative covenants to provide notice of default, to maintain the Company’s existence or as to use of proceeds, which will have no cure period); material inaccuracy of any representation or warranty made or deemed made by the Company; cross-payment default and cross-event of default to material indebtedness; bankruptcy and insolvency events; material monetary judgments; certain ERISA events (subject to a “material adverse effect” standard); and Change of Control (to be defined consistent with the Bridge Documentation Principles). | |
| | | | | During the period from and including the effectiveness of the Bridge Credit Agreement and until the earlier of the termination of the commitments under, or the funding of the loans under, the Bridge Facility on the Closing Date, and notwithstanding (a) any failure by the Company or any of its subsidiaries to comply with any of the affirmative covenants, negative covenants or financial covenant, (b) the occurrence of any event of default under the Bridge Credit Agreement (other than any event of default relating to (x) non-payment of amount due in respect of the Bridge Facility or (y) bankruptcy or insolvency events with respect to the Company) or (c) subject to the parenthetical provision in clause (b) above, any provision to the contrary in the Bridge Credit Agreement, neither the Administrative Agent nor any Lender shall be entitled to (i) rescind, terminate or cancel the Bridge Facility or any of its commitments thereunder, or exercise any right or remedy under the Bridge Facility, to the extent to do so would prevent, limit or delay the making of its loan under the Bridge Facility, (ii) refuse to participate in making its loan under the Bridge Facility or (iii) exercise any right of set-off or counterclaim in respect of its loan under the Bridge Facility to the extent to do so would prevent, limit or delay the making of its loan under the Bridge Facility; provided that, for the avoidance of doubt, (A) the borrowing under the Bridge Facility shall be subject to the satisfaction or waiver of (and solely of) the conditions set forth in Exhibit C to the Commitment Letter and (B) commitments in respect of the Bridge Facility shall reduce as provided under the “Voluntary Commitment Reductions/Prepayments” and the “Mandatory Commitment Reductions/Prepayments” sections above. For the avoidance of doubt, (x) the rights and remedies of the Lenders, the Arranger and the Administrative Agent with respect to any condition precedent set forth in Exhibit C to the Commitment Letter shall not be limited in the event that any such condition precedent is not satisfied or waived on the Closing Date, (y) immediately after the funding of loans | |
| | | | | under the Bridge Facility on the Closing Date, all of the rights, remedies and entitlements of the Administrative Agent and the funding Lenders under the Bridge Credit Agreement shall be available and may be exercised by them notwithstanding that such rights, remedies or entitlements were not available prior to such time as a result of this paragraph and (z) nothing in this paragraph shall affect the rights, remedies or entitlements (or the ability to exercise the same) of the Administrative Agent or the Lenders with respect to any event of default under the Bridge Credit Agreement relating to (i) non-payment of amounts due under the Bridge Facility or (ii) bankruptcy or insolvency events with respect to the Company. | |
| | Most Favored Nation: | | | The Bridge Credit Agreement will contain a “most favored nation” provision in respect of the Existing Credit Agreement (as it may be amended pursuant to the Existing Credit Agreement Amendment) (or any replacement or refinancing thereof) if the Existing Credit Agreement (or the definitive documentation for any replacement or refinancing thereof) contains a guarantee requirement, a collateral requirement, an affirmative covenant, a negative covenant, a financial covenant or an event of default that is not set forth in the Bridge Credit Agreement (or that is more restrictive on the Company and its subsidiaries or more favorable to the lenders thereunder than the corresponding provision, covenant or event of default set forth in the Bridge Credit Agreement), pursuant to which such guarantee requirement, collateral requirement, affirmative covenant, negative covenant, financial covenant or event of default shall be deemed to be incorporated by reference into the Bridge Credit Agreement. | |
| | Voting: | | | Subject to the Bridge Documentation Principles, amendments and waivers of the Bridge Credit Agreement will require the approval of Lenders holding a majority of the aggregate amount of the commitments or loans under the Bridge Facility (the “Bridge Required Lenders”); provided that (a) the consent of each Lender directly adversely affected thereby will be required with respect to customary matters affecting such Lender, including (i) reductions in the amount or extensions of the scheduled date for the payment (but not of any required prepayment) of principal of any loan, (ii) reductions in interest rates or fees or extensions of the scheduled dates for payment thereof and (iii) increases in the amounts or extensions of the scheduled expiration date of the Lenders’ commitments, (b) the consent of 100% of the Lenders will be required with respect to (i) modifications to the pro rata payments provisions of the Bridge Credit Agreement and (ii) modifications to any of the voting percentages, (c) any amendment or waiver that by its express terms adversely affects the rights of one Tranche in respect of mandatory commitment reductions or prepayments differently than those under the other Tranche will not be effective without the approval of Lenders holding a majority of the aggregate amount of the commitments or loans under the applicable Tranche and (d) any amendment or waiver that by its terms adversely affects the rights or duties of Lenders under one Tranche, but not the other Tranche, will only require the approval of holders of a majority of the aggregate amount of the commitments or loans under the applicable Tranche; provided further that no amendment or waiver shall amend, modify or otherwise affect the rights or duties of the Administrative Agent without the prior written consent of the Administrative Agent. | |
| | | | | In connection with any waiver or amendment that requires the consent of all the Lenders or all affected Lenders and that has been approved by the Bridge Required Lenders (or the requisite majority in interest of Lenders under the applicable Tranche), the Company shall have the right to replace any non-consenting Lender. | |
| | Cost and Yield Protection: | | | Subject to the Bridge Documentation Principles, the Bridge Credit Agreement will contain customary provisions (a) protecting the Administrative Agent and the Lenders against increased costs or loss of yield resulting from changes in reserve, capital adequacy and capital or liquidity requirements (or their interpretation), illegality, unavailability and other requirements of law and from the imposition of or changes in certain taxes, subject to customary lender mitigation provisions, and (b) indemnifying the Lenders for customary “breakage costs” incurred in connection with, among other things, any prepayment of a Term SOFR loan on a day other than the last day of an interest period with respect thereto. For all purposes of the Bridge Credit Agreement, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines and directives promulgated thereunder and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case, pursuant to Basel III, shall be deemed introduced or adopted after the date of the Bridge Credit Agreement. The Bridge Credit Agreement will provide that all payments are to be made free and clear of taxes (with customary exceptions). | |
| | Defaulting Lenders: | | | Subject to the Bridge Documentation Principles, the Bridge Credit Agreement will contain customary provisions with respect to Defaulting Lenders. | |
| | Assignments and Participations: | | | Subject to the Bridge Documentation Principles, the Lenders may assign all or, in an amount of not less than US$5,000,000, any part of, their respective commitments or loans under either Tranche to one or more eligible assignees (excluding any Disqualified Lender), subject to the prior written consent (each such consent not to be unreasonably withheld, delayed or conditioned) of (a) the Administrative Agent and (b) the Company, except that no consent of the Company shall be required (i) with respect to assignments made to any Specified Permitted Lender or (ii) after the Closing Date, with respect to any assignment made during the continuance of any payment or bankruptcy event of default; provided that, after the Closing Date, assignments made to a Lender or an affiliate or approved fund of a Lender will not be subject to the above consent requirements. The Company’s consent shall be deemed to have been given if the Company has not responded within 10 business days of a written request for an assignment. Upon such assignment, the assignee will become a Lender for all purposes under the Bridge Credit Agreement. A US$3,500 processing fee will be required in connection with any such assignment. The Lenders will also have the right to sell participations without restriction (other than to natural persons and the Company and its subsidiaries and affiliates), subject to limitations on voting rights consistent with the Bridge Documentation Principles, in their respective shares of either Tranche. | |
| | Expenses and Indemnification; Liability Limitations: | | | Subject to the Bridge Documentation Principles, the Bridge Credit Agreement will contain customary provisions relating to indemnity, reimbursement, exculpation, liability limitations and related matters. | |
| | EU/UK Bail-in Provisions: | | | Subject to the Bridge Documentation Principles, the Bridge Credit Agreement will contain a customary contractual recognition provision required under Article 55 of the Bank Recovery and Resolution Directive of the European Union and the analogous contractual recognition provision in respect of the U.K. | |
| | Governing Law and Forum: | | | The Bridge Credit Agreement will provide that the parties thereto will submit to the exclusive jurisdiction and venue of the federal and state courts of the State of New York, in each case, sitting in the Borough of Manhattan and will waive any right to trial by jury. New York law will govern the Bridge Credit Agreement; provided that (a) the interpretation of the definition of “Material Adverse Effect “ (as defined in Exhibit C to the Commitment Letter) and whether or not a Material Adverse Effect has occurred and is continuing, (b) the determination of the accuracy of any Merger Agreement Representations (as defined in Exhibit C to the Commitment Letter) and whether as a result of any inaccuracy of such representations and warranties the Company (or any of its affiliates) has the right to terminate its (or its affiliate’s) obligations under the Merger Agreement or the right to elect not to consummate the Merger and (c) the determination of whether the Merger has been consummated pursuant to, and in all material respects in accordance with, the terms of the Merger Agreement, in each case, will be governed by, and construed in accordance with, laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws. | |
| | Counsel to the Administrative Agent and the Arranger: | | | Cravath, Swaine & Moore LLP. | |
| | Interest Rates: | | |
Interest will accrue at, at the option of the Company, a rate per annum equal to (a) Adjusted Term SOFR plus the Applicable Margin or (b) the ABR plus the Applicable Margin, in each case as shown on the Pricing Grid set forth below.
The Company may elect interest periods of 1, 3 or 6 months for Term SOFR borrowings.
Calculation of interest shall be on the basis of the actual days elapsed in a year of 360 days (or 365 or 366 days, as the case may be, in the case of ABR loans when determined on the basis of the Prime Rate). Interest on Term SOFR Loans shall payable at the end of each interest period (and, in the case of an interest period longer than three months, every three months) and upon any prepayment or repayment on the amount prepaid or repaid. Interest on ABR loans shall be payable quarterly and upon any prepayment or repayment on the amount prepaid or repaid.
Interest on overdue amounts will accrue, in the case of principal, at the rates otherwise applicable plus 2% per annum or, in the case of amounts other than principal, interest accruing on ABR loans plus 2% per annum.
“ABR” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day; (b) the NYFRB Rate in effect on such day plus 1∕2 of 1% per annum; and (c) the Adjusted Term SOFR for one month Interest Period as published two U.S. Government Securities Business Days prior to such day (or if such day is not a U.S. Government Securities Business Day, the immediately preceding U.S. Government Securities Business Day) plus 1%. For purposes of clause (c) above, the Adjusted Term SOFR on any day shall be based on the Term SOFR Reference Rate at approximately 5:00 a.m., Chicago time, on such day (or any amended publication time for the Term SOFR Reference Rate, as specified by the CME Term SOFR Administrator in the Term SOFR Reference Rate methodology); provided that if such rate shall be less than zero, such rate shall be deemed to be zero. Any change in the ABR due to a change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR, as the case may be. Notwithstanding the foregoing, if ABR as determined would be less than 1.00% per annum, such rate shall be deemed to be 1.00%.
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“Adjusted Term SOFR” means Term SOFR plus 0.10% (it being agreed that if, prior to the Closing Date, the Existing Credit Agreement is amended to remove the Term SOFR credit spread adjustment set forth therein, the same shall apply to the Bridge Facility); provided that if the Adjusted Term SOFR as so determined would be less than zero, such rate shall be deemed to be equal to zero.
“CME Term SOFR Administrator” means CME Group Benchmark Administration Limited as administrator of the forward-looking term Secured Overnight Financing Rate (SOFR) (or a successor administrator).
“Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as shall be set forth on the NYFRB Website from time to time, and published on the next succeeding business day by the NYFRB as the federal funds effective rate, provided that if such rate shall be less than zero, such rate shall be deemed to be zero.
“NYFRB” means the Federal Reserve Bank of New York.
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“NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a business day, for the immediately preceding business day); provided that if none of such rates are published for any day that is a business day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m., New York City time, on such day received by the Administrative Agent from a federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates as so determined would be less than zero, such rate shall be deemed to be zero.
“NYFRB Website” means the website of the NYFRB at http://www.newyorkfed.org, or any successor source.
“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight eurodollar transactions denominated in dollars by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRB as set forth on the NYFRB Website from time to time, and published on the next succeeding business day by the NYFRB as an overnight bank funding rate.
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“Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the United States or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.
“SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.
“SOFR Administrator” means the NYFRB (or a successor administrator of the secured overnight financing rate).
“Term SOFR” means, for any tenor comparable to the applicable interest period, the Term SOFR Reference Rate at approximately 5:00 a.m., Chicago time, two U.S. Government Securities Business Days prior to the commencement of such tenor comparable to the applicable interest period, as such rate is published by the CME Term SOFR Administrator.
“Term SOFR Reference Rate” means, for any day and time (such day, the “Term SOFR Determination Day”), with respect to any loan and for any tenor comparable to the applicable interest period, the rate per annum published by the CME Term SOFR Administrator and identified by the Administrative Agent as the forward-looking term rate based on SOFR. If by 5:00 p.m., New York City time, on such Term SOFR Determination Day, the “Term SOFR Reference Rate” for the applicable tenor has not been published by the CME Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR has not occurred, then, so long as such day is otherwise a U.S. Government Securities Business Day, the Term SOFR Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the CME Term SOFR Administrator, so long as such first preceding U.S. Government Securities Business Day is not more than five U.S. Government Securities Business Days prior to such Term SOFR Determination Day.
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| | | | | “U.S. Government Securities Business Day” means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities. | |
| | Duration Fees: | | | The Company will pay a fee (the “Duration Fee”) to each Lender on each date set forth in the grid below in an amount equal to the percentage, determined in accordance with the grid below, of the principal amount of the loans under the Bridge Facility of such Lender outstanding at the close of business, New York City time, on such date: | |
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Duration Fees
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90 days after the
Closing Date |
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180 days after the
Closing Date |
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270 days after the
Closing Date |
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0.50%
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0.75%
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1.00%
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| | Ticking Fees: | | | The Company will pay ticking fees as set forth in the Arranger Fee Letter at the rate equal to 0.125% per annum. | |
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Pricing Category
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Ratings
(Moody’s/S&P/Fitch) |
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Applicable Margin
Term SOFR Loans (percent per annum) |
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Applicable Margin
ABR Loans (percent per annum) |
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Category 1
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Equal to or higher than Baa1 / BBB+ / BBB+
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| | | | 1.125% | | | | | | 0.125% | | |
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Category 2
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Baa2 / BBB / BBB
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| | | | 1.250% | | | | | | 0.250% | | |
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Category 3
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Baa3 / BBB- / BBB-
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| | | | 1.375% | | | | | | 0.375% | | |
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Category 4
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Ba1 / BB+ / BB+
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| | | | 1.625% | | | | | | 0.625% | | |
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Category 5
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Equal to or lower than Ba2 / BB / BB
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| | | | 2.000% | | | | | | 1.000% | | |
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Incorporated by Reference
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Exhibit
No. |
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Exhibit Description
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Form
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Date
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Number
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Filed
Herewith |
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| 2.1 | | | Agreement and Plan of Merger, dated as of July 28, 2025, by and among Skyworks, Merger Sub I, Merger Sub II, and Qorvo (attached as Annex A to this joint proxy statement/prospectus which forms part of this registration statement)^ | | | | | | | | | | | |
X
|
|
| 3.1 | | | | | 10-K | | | 10/3/2025 | | | 3.1 | | | | | |
| 3.2 | | | | | 8-K | | | 5/12/2023 | | | 3.1 | | | | | |
| 5.1 | | | | | | | | | | | | | |
X
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| |
| 8.1 | | | | | | | | | | | | | |
X
|
| |
| 8.2 | | | | | | | | | | | | | |
X
|
| |
| 10.1 | | | | | 8-K | | | 10/27/2025 | | | 10.1 | | | | | |
| 10.2 | | | | | 8-K | | | 10/27/2025 | | | 10.2 | | | | | |
| 23.1 | | | Consent of Skadden, Arps, Slate, Meagher & Flom LLP (included in Exhibits 5.1 and 8.1) | | | | | | | | | | | |
X
|
|
| 23.2 | | | | | | | | | | | | | |
X
|
| |
| 23.3 | | | | | | | | | | | | | |
X
|
| |
| 23.4 | | | | | | | | | | | | | |
X
|
| |
| 24.1 | | | | | | | | | | | | | |
X
|
| |
| 99.1 | | | | | | | | | | | | | |
X
|
| |
| 99.2 | | | | | | | | | | | | | |
X
|
| |
| 99.3 | | | | | | | | | | | | | |
X
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| |
| 99.4 | | | | | | | | | | | | | |
X
|
| |
| 99.5 | | | | | | | | | | | | | |
X
|
| |
| 107 | | | | | | | | | | | | | |
X
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| |
Signature
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Title
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Date
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/s/ Philip G. Brace
Philip G. Brace
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President; Chief Executive Officer, and Director
(Principal Executive Officer) |
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December 4, 2025
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/s/ Philip Carter
Philip Carter
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Chief Financial Officer and Senior Vice President
(Principal Financial and Accounting Officer) |
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December 4, 2025
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/s/ Christine King
Christine King
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| | Director, Chairman of the Board | | |
December 4, 2025
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/s/ Alan S. Batey
Alan S. Batey
|
| | Director | | |
December 4, 2025
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/s/ Kevin L. Beebe
Kevin L. Beebe
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| | Director | | |
December 4, 2025
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/s/ Eric J. Guerin
Eric J. Guerin
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| | Director | | |
December 4, 2025
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/s/ Suzanne E. McBride
Suzanne E. McBride
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| | Director | | |
December 4, 2025
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/s/ David P. McGlade
David P. McGlade
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| | Director | | |
December 4, 2025
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Signature
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| |
Title
|
| |
Date
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|
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/s/ Robert A. Schriesheim
Robert A. Schriesheim
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| | Director | | |
December 4, 2025
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/s/ Maryann Turcke
Maryann Turcke
|
| | Director | | |
December 4, 2025
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|