Photo: Texas Instruments
In the first big tech buy of 2011, chipmaker Texas Instruments has bought its historic rival National Semiconductor for $6.5 billion in cash.TI is paying $25 per share, a premium of nearly 80% over National’s closing price.
Both companies make analogue semiconductors, which are widely used in products like digital cameras and medical equipment.
According to TI, the market for analogue semiconductors was $42 billion in 2010, and TI had sales of $6.0 billion, or 14% of the market, while National Semi had $1.6 billion, or 3% of the market.
Both companies are elderly by tech industry standards. National Semi was founded in 1959. TI started up in 1951, but was actually founded in 1930.
The deal is the largest in tech business since Intel offered $7.7 billion for security software company McAfee last August. The deal closed last month.