Texas Instruments Inc. (TXN or “TI”) has announced its intention to acquire National Semiconductor Corp (NSM) for $6.5 billion in cash. Counter-bids look unlikely, given the 78% premium TI is willing to pay that most prospective buyers would shy away from. The transaction is subject to the usual regulatory approvals (in this case across 10 countries). Therefore, it may not close for another six to nine months. We therefore do not expect much variation in estimates for the next few quarters, although estimates for 2012 are likely to go up. There is significant fragmentation in the market and competition is stiff, so regulatory approval is unlikely to be denied. TI intends to operate National as a separate unit under its analog segment, which would then comprise high performance analog (HPA),
↧