Tuesday, April 5, 2011

TI (TXN) Buys National Semiconductor (NSM)

Two of the leading companies manufacturing analog chips are apparently become one, as Texas Instruments (NYSE:TXN) is reportedly acquiring rival National Semiconductor (NYSE:NSM) for $6.5 billion.

TI's CEO Rich Templeton said, "This acquisition is about strength and growth. National has an excellent development team, and its products combined with our own can offer customers an analog portfolio of unmatched depth and breadth."

With the fierce competition and pricing in the sector, expectations are the deal should clear regulatory scrutiny.

The transaction will be all cash, and Texas Instruments will pay $25 a share for the company.

Texas Instruments was down in after hours trading, falling to $33.54, down $0.53, or 1.55 percent. National Semiconductor soared on the news, rising to $24.30, up $10.23, or 72.71 percent.

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