Texas Instruments acquires National Semiconductor for $6.5 billion

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Texas Instruments acquires National Semiconductor for $6.5 billion

2011-04-05 06:41:10 GMT+7 (ICT)

DALLAS, TEXAS (BNO NEWS) -- Texas Instruments Incorporated (TI) on Monday announced its acquisition of National Semiconductor in an all-cash transaction of about $6.5 billion.  

TI and National signed a definitive agreement after the boards of directors of both companies unanimously approved the transaction under which TI will acquire National for $25 per share.

TI is expecting to fund the transaction, which is expected to close within six to nine months, with a combination of existing cash balances and debt. The acquisition is also subject to customary closing conditions, including review by U.S. and international regulators and approval by National's shareholders.  

Rich Templeton, TI's chairman, said the combined sales team would be ten times larger than National's is currently, as the portfolio would be exposed to more customers in more markets.

TI has 30,000 analog products, extensive customer reach, and industry-leading manufacturing including the world's first 300-millimeter analog factory, while National brings a portfolio of 12,000 analog products, a strong position with customers in the industrial power market, and excellent customer design tools.  

Upon close of the transaction, National becomes part of TI's analog segment, and sales of analog semiconductors is expected to represent almost 50 percent of TI's revenue.

The market for analog semiconductors was $42 billion in 2010. TI is the market leader with 2010 analog revenue of $6.0 billion, or 14 percent of the market, and National's revenue in calendar year 2010 was about $1.6 billion, or 3 percent of the market.

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