Sunday, April 3, 2011

TI to Acquire National Semiconductor, Consolidating Analog Market

Texas Instruments agreed to acquire National Semiconductor for $25 per share in cash -- valuing the deal at about $6.5 billion. Both companies are leaders in analog semiconductors.

The market for analog semiconductors was $42 billion in 2010. TI was 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.

National, which is based in Santa Clara, California, boasts a portfolio of 12,000 analog devices, with many design wins in the industrial power market and customer design tools. It has 5,700 employees and 2010 annual revenues of $1.6 billion. National has manufacturing operations 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.

Texas Instruments has about 30,000 analog devices in its portfolio, with depth in mobile/portable markets.

When the acquisition closes, National will become part of TI's analog segment, and sales of analog semiconductors will represent almost 50 percent of TI's revenue.

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