Texas Instruments Inc. late Monday said it’s going to buy National Semiconductor for $6.5 billion in cash.

TI said it will acquire National Semi for $25 a share, a 78% premium to Monday’s close. The boards of each company have unanimously approved the deal.

“This acquisition is about strength and growth,” TI Chief Executive Rich Templeton said in a statement. “National has an excellent development team, and its products combined with our own can offer customers an analog portfolio of unmatched depth and breadth.”

The acquisition deal underscores TI’s ongoing emphasis on the market for analog chips, which perform tasks such as converting sounds and temperature into digital signals for computers to understand. TI’s analog processors are used for such products as home security systems, car airbags and industrial test equipment.

National’s portfolio includes 12,000 analog products and the company has a strong presence in the industrial power market, TI said. Once the merger is approved, TI’s total analog chip sales will make up almost 50% of the company’s total revenue, the Dallas-based company said.

By: DocMemory
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