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Texas Instruments snaps up Nat Semi

Texas Instruments announced it will buy up National Semiconductor for $25 per share in an all-cash transaction worth about $6.5 billion.

TI's chairman, president and chief executive officer Rich Templeton said the acquisition "is about strength and growth," and he's not too wrong.

TI finds itself in a happy place thanks to consumers' insatiable desire for mobile phones, but this deal is about analogue semiconductors.

In annoucing the deal, Templeton praised NatSemi's development team, said that its products "combined with our own can offer customers an analog portfolio of unmatched depth and breadth."

He said the outfit's management team had done "an outstanding job" of improving margins and streamlining expenses, something that always helps the Rich get richer.

"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," he said. "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 has a portfolio of some 30,000 analogue products some of which are bulit at the world's first 300-millimeter analogue factory. National brings around 12,000 analogue products to the TI table.

TI said the market for analogue semiconductors was $42 billion in 2010 with the Texas-based firm as the market leader with 14 per cent of the market. National claimed about three per cent of the market, according to TI's reckoning.

Once National is nfully Borged, sales of analogue semiconductors will represent almost half of TI's revenue, the firm said in a statement.

The boards of directors of both companies have unanimously approved the transaction, the statement read. monitors all leading technology stories and rounds them up to help you save time hunting them down.