Texas Instruments has announced that its acquisition of National Semiconductor, announced back in April, has received all appropriate regulatory clearance to go ahead.
Designed to boost the company's presence in the profitable analogue semiconductor market, Texas Instrument's acquisition of National Semiconductor will set the company back an estimated $6.5 billion or around $25 per National Semiconductor share.
"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," Texas Instrument chairman Rich Templeton claimed at the original announcement. "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."
National Semiconductor brings around 12,000 analogue designs to the table, boosting Texas Instrument's own 30,000-strong portfolio at a time when the company is seriously considering making a move to pure analogue and selling its digital divisions like the ARM licensed OMAP group.
It's not hard to see why: following the acquisition of National Semiconductor, analogue chips now account for the majority of revenue at Texas Instruments, in a market valued at around $42 billion in 2010. The acquisition is immediately thought to boost TI's market share from 14 per cent to 17 per cent.
"National is now a strategic part of TI's Analogue growth engine," Templeton claims in his latest announcement. "Together, we're focused on accelerating semiconductor innovation to improve performance and power efficiency for our customers' electronic systems."
National Semiconductor's 5,000-odd employees are expected to transition to roles within Texas Instruments, although the integration process will surely result in layoffs as the company strives to minimise duplication within its enlarged ranks. National Semiconductor's fabrication plants - in the US, Scotland, and Malaysia - are expected to remain open to help meet customer demand.