Chip firms in $6.5bn deal

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US chip-maker Texas Instruments is buying National Semiconductor for a whopping $6.5bn (£4bn) in cash, the companies announced yesterday.

The deal combines two of the biggest makers of analogue chips, which are found in everything from mobile phones to industrial equipment.

Under the terms of the deal, which has been unanimously approved by the boards of both companies, Texas Instruments will pay $25 for each share of National Semiconductor’s common stock.

Texas Instruments chief executive Rich Templeton said the deal will give the firm exposure to new markets and allow National Semiconductor access to a huge sales team. The companies had total revenues of $15.6bn in 2010.

Morgan Stanley advised Texas Instruments, while Goldman Sachs advised National Semiconductor.