Texas Instruments and National Semiconductor have agreed a merger that’ll see ‘TI’ acquiring ‘National’ in a deal worth around $6.5 billion (almost £4 billion).
TI currently has a portfolio of 30,000 products and represents around 14% of the analogue semiconductor market in terms of revenue, while National has 12,000 products and 3% of the market. The deal is expected to be finalised towards the end of the year.
Rich Templeton, TI’s chairman, president and chief executive officer, 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. In recent years, National’s management team has done an outstanding job of improving margins and streamlining expenses, which upon close will increase TI’s profitability and earnings per share, excluding transaction costs. 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. 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.”