Texas Instruments (TI) has acquired National Semiconductor in a multi-billion dollar deal, cementing its place in the market.
TI agreed to pay $6.5 billion (4 billion) for its rival, equating to $25 a share.
Bringing the two companies together under one umbrella will make TI the third largest semiconductor manufacturer in the world. It will overtake Toshiba with its joint revenues of $14.5 billion, but will still lag behind the likes of Samsung's $27.8 billion, according to iSuppli figures.
"This acquisition is about strength and growth," said Rich Templeton, TI's chairman, president and chief executive (CEO).
"National has an excellent development team and its products combined with our own can offer customers an analog portfolio of unmatched depth and breadth."
"Our two companies complement each other very well," added Don Macleod, National Semiconductor's CEO.
"TI has much greater scale in the marketplace, with its larger portfolio of products and its large global sales force. This provides a platform to enhance National's strong and highly profitable analog capability, power management in particular, leading to meaningful growth."
Although the deal is agreed, it still requires the nod from National Semiconductor's shareholders and needs to go through the regulatory process. All being well, the deal is expected to close within six to nine months.
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