Texas Instruments (NASDAQ:TXN) announced late yesterday it has agreed to acquire National Semiconductor (NYSE:NSM) for about $6.5 billion. Texas Instruments is paying $25 per share in cash, and the boards of both companies have approved the transaction.
The companies said deal is about strength and growth. Texas Instruments has 30,000 analog products and broad customer reach, while National Semi has 12,000 analog products with a strong position in the industrial power market.
National will become part of TIís analog operations.
The transaction will be accretive to Texas Instruments earnings per share upon close, which is expected in six to nine months.
National Semiconductor shares skyrocketing, trading up almost 71% Tuesday, while Texas Instruments shares are trading up .5%.
The chip sector is getting a boost following the announcement: Advanced Micro Devices (AMD) shares are trading up about 1.5% Tuesday, while Intel (INTC) trades up over 1.5%, and Nvidia (NVDA) trades up .9%.
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