DOW JONES NEWSWIRES
Texas Instruments Inc. (TXN) said it will buy National
Semiconductor (NSM) for about $6.5 billion in cash, combining two
analog semiconductor companies and continuing a trend of
acquisitions in the industry.
TI said it will pay $25 a share for each share of National
Semiconductor, which is a premium of 78% to Monday's closing
price.
Both companies' boards of directors have approved the
acquisition, and the companies said they expect the deal to close
in the next six to nine months.
National's "products combined with our own can offer customers
an analog portfolio of unmatched depth and breadth," said TI
Chairman and Chief Executive Rich Templeton. "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."
TI, which makes chips used in everything from cellphones to
industrial equipment, has seen a sharp rebound in demand after the
recession caused customers to virtually stop buying chips. Still,
the company in December said the "inventory-driven downturn that
started in the second half of 2010 is now mostly complete."
National Semi--which also makes chips for cellphones, industrial
and communications-infrastructure equipment--has seen demand bounce
back from slumped levels during the recession. Last month said its
fiscal third-quarter earnings climbed 12% as sales were lower but
costs cuts helped the bottom line.
A number of deals have been struck in recent months in the
chip-making industry, though they have mostly been on a smaller
scale.
Shares of Texas Instruments closed at $34.11, while National
Semiconductor shares closed at $14.07. Both stocks were halted
after the bell before the deal was announced.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com