Texas Instruments Pays National Semiconductor $6.5 Billion

It isn't very often that multi-billion dollar transactions are carried out on the IT industry, or any industry for that matter, but announcements definitely get made when they do, as it happened with Texas Instruments and National Semiconductor.

Although small transactions and licensing agreements happen all the time, truly large payments on the IT market happen for two main reasons.

One situation is when a company or another wins an antitrust lawsuit and gets the court to approve the payment of fines.

The other situation is much more friendly (usually) and involves the acquisition of all assets owned by a company.

The latter type of development is what has brought Texas Instrument to its decision to pay the Board of national Semiconductor the sum of $6.5 million,

In other words, TI is now taking over NS in exchange for $25 in cash for each of the latter's shares.

"This acquisition is about strength and growth," Rich Templeton, TI's chairman and CEO, said in a statement.

"National has an excellent development team, and its products combined with our own can offer customers an analog portfolio of unmatched depth and breadth."

Once the transaction is over, the Dallas-based company will own 12,000 analog products, many high-quality design tools, manufacturing sites in Maine, Malaysia and Scotland and many customers in the industrial power market.

"National has an excellent development team, and its products combined with our own can offer customers an analog portfolio of unmatched depth and breadth," said Rich Templeton, TI's chairman, president and chief executive officer.

"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."