Texas Instruments to acquire National Semiconductor
Texas Instruments (TI) (NYSE: TXN) and National Semiconductor (NYSE: NSM) announced that 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 boards of directors of both companies have unanimously approved the transaction.
“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,” opined Rich Templeton, chairman, president and chief executive officer, TI.
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.
“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,” remarked Don Macleod, CEO, National Semiconductor.
National’s headquarters will remain in Santa Clara, California; however, the combined company also will benefit from National’s manufacturing operations, located in Maine, Scotland and Malaysia, which TI will continue to operate. The company informed that, National brings a portfolio of 12,000 analog products. 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.
- Facebook’s Messenger 2.2 To Woo The Enterprise
- Cognitive Computing: An Essential Science In HR
- How UP Dial 100 Is Changing the Way Police Do Business
- Infosys To Acquire Product Design Firm Brilliant Basics
- Google Kills G-Chat For Hangouts : What It Means For Enterprise
- Verizon Completes Yahoo Deal, Marissa Mayer Exits
- Big Data In E-Commerce: Spotting, Analyzing, Acting
- SBI Launches Its National Hackathon, Code For Bank
- Weekly Rewind: Top 10 Stories On CXO Today (May 8-13)
- National Tech Day: 3 technologies That Will Define India’s Future