Texas Instruments Buys National Semiconductor For $6.5 Billion

April 6th, 2011 at 11:56 am

In order to for companies to grow nowadays, consolidation of businesses may be the right path to take. Big companies may need to become even bigger by forging partnerships or merging with others. This may be, in a sense what Texas Instruments may have in mind as it is set to acquire National Semiconductor.

The two players in the analog semiconductor industry seem to have joined forces as Texas Instruments is set to acquire National Semiconductor for a reported price of $6.5 billion. This may set to create a bigger semiconductor giant as the two companies join forces and become one under the TI banner. The two companies have signed a definitive agreement under which TI will be acquiring National Semi in an all-cash transaction. TI has agreed to buy National Semi shares at $25 per share, totaling $6.5 billion.

With the two semiconductor companies joining together, TI will be able to offer a wider range of products under its name as both companies have previously set certain strengths on different areas of the industry. Joining together will help bring together a better portfolio of products. TI, with over 30,000 products under its name, will be adding another 12,000 which belong previously to National Semi’s portfolio.

Not only that, the acquisition is also set to streamline production along with increasing TI’s market share in the industry to make it an even more formidable player in the global marketplace. Texas Instruments currently is the global market leader in analog semiconductors with a 14 percent market share. National Semi has a 3 percent share in the same market which TI will further be acquiring and further develop.


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