DALLAS -- Seeing an opportunity to offer plug-in power supplies with its analog semiconductors, Texas Instruments Inc. here today said it plans to acquire Power Trends Inc., a privately held supplier of point-of-use power solutions.
The acquisition is being made through a stock-for-stock transaction. Based on TI's closing stock price last Friday, the company expects to issue about 1.68 million shares worth approximately $145 million in exchange for all outstanding shares of Power Trends.
Power Trends' product line includes integrated switching regulators and DC-to-DC converters that reside next to digital signal processors, microprocessors, and other devices on the circuit board. The Warrenville, Ill.-based company has 230 and will become a wholly owned subsidiary of TI, reporting into TI's worldwide analog business.
"The growing complexity of power management systems creates real design challenges for our customers," said Dan Reynolds, TI vice president for advanced analog products. "Customers increasingly find it easier and more cost-effective to buy a pre-designed and tested plug-in power supply instead of developing their own new power management skills and engineering teams. This frees up their designers to focus on system features that add greater value to their products."
Plug-in power-supplies are a growing trend in power management, as complex, high-performanceICs require higher current at lower voltages. Power management is moving from traditional centralized power supplies to point-of-use power regulation located on individual circuit boards close to the device being powered. TI expects demand for plug-in power products to grow to $1 billion within five years.
"By combining our power integration skills with TI's leading analog silicon technology, we can reach more customers with total power management solutions, that offer even greater performance and ease-of-design," said Russ Ashdown, president and CEO of Power Trends.
Besides adding Power Trends' system design expertise in a fast-growing market, the acquisition is part of TI's strategy to beef up its analog chip portfolio. In July, TI moved to acquire Unitrode Corp., of Merrimack, N.H. (see July 26 story).