Two of the oldest names in the electronics industry have announced they’re getting together. Texas Instruments is buying National Semiconductor for $6.5 billion. That's a pretty hefty 77% premium over the company's $3.4 billion market cap. The deal is about infrastructure as much as it is about technology, sources say.
TI's big business these days comes in the form of System on a Chip (SoC) components used in mobile phones and tablets. National Semi on the other hand, specializes in analog chips. Ti still has an analog operation as well, so these products will make up a large portion of TI's total business after the deal. Also of interest in the deal is National's manufacturing fabs in Maine, Scotland and Malayasia. TI says the facilities will remain in operation.
Shares of TI are up slightly on the news. National has seen its stock price skyrocket 70%, which interestingly enough, puts it right about in line with the value of the deal.