TI To Acquire Burr-Brown Corp. For $7.6 BillionJune 21, 2000 by Jeff Shepard
Texas Instruments Inc. (TI, Dallas, TX) announced it will acquire Burr-Brown Corp. (Tucson, AZ) in a stock-for-stock transaction valued at approximately $7.6 billion. The acquisition strengthens TI's position in the data converter and amplifier segments of the analog semiconductor market. TI plans to integrate its advanced process technologies with Burr-Brown's design expertise to produce products for applications that require high levels of precision and performance. Currently, five percent of TI's sales figures apply to dc/dc converters sales.Burr-Brown will become part of TI's catalog Analog organization. This is the third acquisition TI has made in the past 12 months to expand and build its leadership in catalog analog semiconductors. TI acquired Unitrode Corp. (Merrimack, NH), a power management semiconductor for battery management company, and Power Trends (Warrenville, IL), a supplier of power solutions situated next to digital signal processors and microprocessors inside electronic systems, in October and November of 1999, respectively. All three acquired companies complement TI's existing catalog analog offering.TI will issue 1.3 shares of its common stock for each outstanding share of Burr-Brown common stock. Each share of Burr-Brown stock issuable under options and convertible notes will become convertible into 1.3 shares of TI common stock."I am very excited about the compelling synergies of the two companies," said Syrus Madavi, Burr-Brown chairman, president and CEO. "TI's strength in DSP will introduce our high performance analog and data converter products into new applications.The makers of Internet appliances and communication systems will have the best of both worlds in one company, with complementary components to optimally meet their total signal processing requirements." TI and Burr-Brown expect the acquisition to be completed close to the end of the third quarter.