Texas Instruments Inc
DOUG FREEDMAN, ANALYST, GLEACHER & CO
They've got the ability to take this product portfolio and bring it into a lower-cost manufacturing footprint, possibly.
It's about gaining product portfolio. It's a product portfolio addition. There's also sales-team synergies. You're getting rid of a sales and marketing force that all called on the same customers.
We're basically overselling analog, in 10 different analog companies all selling to the exact same customers with an end market that is growing 3 to 4 percent.
End markets aren't growing fast enough to justify all these companies in this space.
SRINI PAJJURI, ANALYST, CREDIT AGRICOLE SECURITIES
It's certainly a surprise because TI management has been saying they're not interested in large acquisitions. They have built a lot of capacity in the past few years.
It's a huge premium. National hasn't done a whole lot, it's been a beaten-down stock. The deal wouldn't have happened at a lower price.
It's difficult to buy a company when the stock is beaten down, (you) have to pay a premium.
Obviously they have a lot of capacity, it will take time for TI to transfer National's products into their factories.
BRIAN COLELLO, ANALYST, MORNINGSTAR
It's very surprising. Texas Instruments has made some shrewd investments to expand their production capacity in an attempt to gain growth organically. We thought that would drive growth.
Analog (chip) acquisitions of this size are fairly rare, so this deal is surprising to us.
It will improve TI's position in power management chips, that's where National has particular strength. I'm very curious to hear what they say on the call on their strategy of combining the two firms.
(Reporting by Bill Rigby in Seattle and Jennifer Saba in New York)