Texas Instruments Acquiring National Semiconductor For $6.5 Billion
Texas Instruments Incorporated (NYSE:TXN) is acquiring National Instruments Corp (Public, NASDAQ:NATI) for $6.5 billion. Both TI and NI are known for building “analog” processors, a computer chip that converts data from temperature, light intensity, and shifting magnetic fields into digital data that computers can interpret. These chips are essential for cameras and phones.
TI is paying $25 per share for National Semiconductor. This is a 77% premium on National’s stock price. TI will be financing the deal by borrowing $3-$4 billion and paying additional in cash. This makes TI the third largest semiconductor company after Intel and Samsung.
[NYT]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry