Texas Instruments to acquire National Semiconductor
Texas Instruments Incorporated (TI) (NYSE: TXN) and National Semiconductor (NYSE: NSM) today announced they have signed a definitive agreement under which TI will acquire National for $25 per share in an all-cash transaction of about $6.5 billion. The acquisition combines two industry leaders in analog semiconductors, each with unique strengths in delivering products to improve performance and efficiency and convert real-world signals in electronic systems. The boards of directors of both companies have unanimously approved the transaction.
"This acquisition is about strength and growth," said Rich Templeton, TI's chairman, president and chief executive officer. "National has an excellent development team, and its products combined with our own can offer customers an analog portfolio of unmatched depth and breadth. 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. 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. 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."
"Our two companies complement each other very well," said Don Macleod, National's chief executive officer. "TI has much greater scale in the marketplace, with its larger portfolio of products and its large global sales force. This provides a platform to enhance National's strong and highly profitable analog capability, power management in particular, leading to meaningful growth."
Each company has unique strengths. Among them are the breadth of TI's 30,000 analog products, extensive customer reach, and industry-leading manufacturing including the world's first 300-millimeter analog factory. 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 will represent almost 50 percent of TI's revenue.
The combined company also will benefit from National's manufacturing operations, located in Maine, Scotland and Malaysia, which TI will continue to operate. Each site has additional capacity to increase production. National's headquarters will remain in Santa Clara, California.
Under terms of the agreement, National stockholders will receive $25 in cash for each share of National common stock they hold at the time of closing. TI expects to fund the transaction with a combination of existing cash balances and debt. The acquisition is subject to customary closing conditions, including review by U.S. and international regulators and approval by National's shareholders. The transaction is expected to close in six to nine months.
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. National's revenue in calendar year 2010 was about $1.6 billion, or 3 percent of the market.
Latest News Posts
- Samsung bows out of the Blu-ray player market in the US
- NVIDIA's gaming division bleeds out, revenues down 45%
- AMD rumored to launch 7nm Navi GPUs on 7/7
- Get caught up in 'Girl in the Spider's Web' Blu-ray giveaway
- Activision: Destiny was tying up our resources
- Z77X-UD5H Bios Issue When Setting CPU Multiplier Above 44
- Resident Evil 2 Remake Review: Fright Night
- HELP !!!! ASROCK Z77 PRO3 "NON-K OC MENU" disappeared :-(
- GeIL Super Luce RGB Sync DDR4-3200 16GB Memory Kit Review
- ASRock Multi-Gigabit Performance: 10GbE/5GbE/2.5G Networking
- BundleFest is coming - Get ready for the biggest bundle event of the year
- Team NINJA Announces DEAD OR ALIVE 6 Deluxe Demo, World Championship, and SNK Collaboration
- Bandai Namco Entertainment America Inc. Launches Jump Force; The Ultimate Manga Crossover Extravaganza
- The Escape Room Puzzle Game Themed On The Seven Deadly Sins Will Hit Steam On Feb 28th
- [01Studio] Indie MMORPG - Citywars Savage