Texas Instruments Inc. (TI) will acquire National Semiconductor for $6.5 billion in cash, the companies announced today. TI makes 30,000 analog products, and its manufacturing base includes the first 300-mm analog factory. Its analog revenue of $6 billion in 2010 represented 14 percent of the market. National has a portfolio of 12,000 analog products, and its revenue of $1.6 billion in 2010 represented a market share of 3 percent. The boards of both companies have approved the acquisition, which amounts to $25 per share. National will become part of TI's analog segment after the closing; sales of analog semiconductors will then represent almost 50 percent of the company's revenue. “Our two companies complement each other very well,” said National CEO Don Macleod. “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.” The combined company also will benefit from National’s manufacturing operations in Maine, Scotland and Malaysia, which TI will continue to operate. Each site has additional capacity to increase production. National’s headquarters will remain in Santa Clara. National stockholders will receive $25 in cash for each share of common stock they hold at the time of closing. TI expects to fund the deal with a combination of existing cash balances and debt. The acquisition is subject to customary closing conditions, including regulatory and shareholder approval. It is expected to close in six to nine months. For more information, visit: www.ti.com/acquire or www.national.com Editor's note: Both companies were nominated for Prism Awards for photonics innovation: Texas Instruments in 2010 for its DLP segment's Digital Light Processing (DLP) LightCommander, a development kit for incorporating DLP technology into a broad range of industrial, medical and communications markets ( See: 2010 Prism Awards for Photonics Innovation: The Finalists); and National Semiconductor in 2009 for its SolarMagic optimizer that provides an electronic solution to long-standing challenges with solar arrays, enabling systems to realize their full power-producing potential. National won the award, presented by Photonics Media and SPIE during Photonics West, in the Sustainable/Green Technology category. (See: Innovators Win Prism Awards)