Feeds

TI acquires National Semiconductor for $6.5bn

Analog chips ahoy!

Top 5 reasons to deploy VMware with Tegile

Texas Instruments has agreed to purchase rival National Semiconductor for $6.5 billion, a deal would combine two of the world's largest chip makers.

TI said the pact would expand its portfolio of analog chips, processors that create a bridge between the worlds of analog and digital. Whereas digital chips can only handle 1s and 0s, analog chips can read and process varying signals, such as speech and music and old school video.

Such chips are used in everything from cameras and phones to industrial equipment. According to TI, a combined company would offer 42,000 analog-chip products, and sales of those products would provide about half of TI's overall revenue.

"This acquisition is about strength and growth," reads a canned statement from TI chairman, president, and chief executive officer Rich Templeton. "National has an excellent development team, and its products combined with our own can offer customers an analog portfolio of unmatched depth and breadth."

According to Templeton, by acquiring National Semiconductor, TI would significantly accelerate its rival's growth, thanks to a combined sales force that's 10 times the size of what Nat Semi has today. "In recent years, National's management team has done an outstanding job of improving margins and streamlining expenses, which upon close will increase TI's profitability and earnings per share, excluding transaction costs," he said.

"Our ability to accelerate National's growth with our much larger sales force is the foundation of our belief that we can produce strong returns on our investment."

TI also said that it would benefit from the existing Nat Semi manufacturing operations located in Maine, Scotland, and Malaysia, adding that each site had room for increased production. Following the acquisition, National Semiconductor's headquarters will remain in Santa Clara, California, about an hour's drive from San Francisco. The deal is expected to close in six to nine months.

According to TI, the analog semiconductor business is a $42bn market, with TI controlled about 14 per cent, or $6bn. Nat Semi, it said, controls about three per cent, or $1.6bn.

TI has agreed to pay stockholders $25 per share of Nat Semi common stock they hold at the time the deal closes. It intends to fund the deal through cash balances and debt. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Nexus 7 fandroids tell of salty taste after sucking on Google's Lollipop
Web giant looking into why version 5.0 of Android is crippling older slabs
All aboard the Poo Bus! Ding ding, route Number Two departing
Only another three days of pooing and I can have a ride!
Heyyy! NICE e-bracelet you've got there ... SHAME if someone were to SUBPOENA it
Court pops open cans of worms and whup-ass in Fitbit case
Official: European members prefer to fondle Apple iPads
Only 7 of 50 parliamentarians plump for Samsung Galaxy S
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
The IT Crowd's internet in a box gets $240k of crowdcash for a cause
'Outernet' project proposes satellite-fuelled 'Lantern' WiFi library for remote areas
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.