TI Completes National Semiconductor Purhcase
NEW YORK (AP) -- Texas Instruments Inc. said Friday that it completed its $6.5 billion purchase of National Semiconductor Corp.
The deal had cleared regulatory reviews earlier this week.
Under the terms of the deal, Texas Instruments agreed to pay $25 for each outstanding share of National common stock. That was a 78 percent premium over National's closing price the day before the deal was announced in April.
Texas Instruments and National Semiconductor, two of the world's biggest makers of analog chips, had previously been long-time rivals. Analog chips are widely used in electronics to transform signals such as sound into digital form that computers can understand.
In announcing the deal in April, Texas Instruments noted that it makes some 30,000 types of analog chips, while National, based in Santa Clara, Calif., makes 12,000. TI said that it owned about 14 percent of the $42 billion analog market last year, while National Semiconductor owned about 3 percent.
Texas Instruments has said the analog business will rise to about 50 percent of its overall revenue when the deal closes. Last year, the analog business made up about 43 percent of the company's $14 billion in revenue. The rest was made up of various different kinds of chips.
Shares of Texas Instruments were up 77 cents, or almost 3 percent, at $27.