Texas Instruments to buy National Semiconductor

April 4, 2011
Texas Instruments chief executive Rich Templeton, pictured in 2007. Computer chip maker Texas Instruments said Monday it would buy California rival National Semiconductor for $6.5 billion in an all cash deal.

Computer chip maker Texas Instruments said Monday it would buy California rival National Semiconductor for $6.5 billion in an all cash deal.

The deal, combines two leaders in the $42 billion market for analog semiconductors, key components in many .

TI will pay National shareholders $25 a share, a 77 percent premium on Monday's closing price of $14.07.

National will be absorbed into TI's analog semiconductor division, but keep its headquarters in Santa Clara, California, the statement said.

"This acquisition is about strength and growth," said chief executive Rich Templeton.

Templeton said combining National's product line with TI's sales force will boost TI's profitability and earnings per share, after the deal is accounted for.

"The combined sales team will be 10 times larger than National's is today, and the portfolio will be exposed to more customers in more markets," he said.

TI is the market leader in analog semiconductors, with 2010 revenues of $6 billion, while National earned $1.6 billion in the same market.

After the deal analog semiconductors will account for about half of TI's total revenues, it said.

Explore further: Texas Instruments Announces Next Generation PCI Express Physical Layer

Related Stories

Texas Instruments sells sensor unit

January 9, 2006

Texas Instruments has sold its Sensors and Controls unit to a private investment company for a whopping $3 billion in cash.

TI profit, revenue tumble on shrinking demand (Update)

April 20, 2009

(AP) -- Texas Instruments Inc. said Monday that first-quarter profit and revenue tumbled as competition heightened and demand for its chips shrank amid the recession, but the results still beat the company's own expectations ...

Improvement in chip divisions boosts profit at TI

April 26, 2010

(AP) -- Texas Instruments Inc.'s first-quarter profit leaped after the chip maker improved results in all its product lines, and the company offered an outlook better than what financial analysts were expecting.

TI 3Q earnings up 60 pct, sees slowdown in 4Q

October 25, 2010

(AP) -- Chip-maker Texas Instruments Inc. said Monday that third-quarter income soared 60 percent as it continued to satisfy pent-up demand after the recession, but the company expects things to cool down for the rest of ...

Texas Instruments says past 'shallow downturn'

January 24, 2011

(AP) -- Texas Instruments Inc. on Monday posted fourth-quarter results that narrowly topped forecasts, and the chipmaker said it is now past a "short and shallow downturn" that hit in the second half of last year.

Recommended for you

Tiny diatoms boast enormous strength

February 8, 2016

Diatoms are single-celled algae organisms, around 30 to 100 millionths of a meter in diameter, that are ubiquitous throughout the oceans. These creatures are encased within a hard shell shaped like a wide, flattened cylinder—like ...

Claims for solar cell efficiency put to test at NREL

February 8, 2016

The sheet of paper taped to the door of Keith Emery's office tells the story. On the paper is a simple fever chart showing the improvements made in increasing the efficiency of two dozen types of solar cells. Some of the ...

Search engines will know what you want ... sooner

February 8, 2016

If you enter "Oklahoma" in a search engine, you might get a travelogue, news about the oil industry, Oklahoma State football scores or an article on Rodgers and Hammerstein musicals. What appears at the top of the list might ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.