In a move aimed at further solidifying its leading position in the analog market, Texas Instruments Inc. today said it will acquire industry stalwart Burr-Brown Corp. in a stock transaction valued at $7.6 billion.
Burr-Brown's position as a supplier of high-performance converters and amplifiers will help cement TI's position as not only a volume leader in analog, but as a high-performance leader, said Alun Roberts, marketing director for analog at TI.
Incorporated in 1956, Tucson, Ariz.-based Burr-Brown has long been a steady if unspectacular performer in the pure-play analog semiconductor market. The company's has ridden the current industry upturn to improved revenues in the last two years, posting net income of $45.7 million on revenue of $291.4 million in 1999, and net income of $18.5 million on revenue of $90.6 million in the first quarter of 2000.
"We are as serious about analog as we are about DSP," said Tom Engibous, chairman, president, and chief executive of TI. "The people of Burr-Brown are elite developers of high-performance analog products. This combination means TI will have a leading position in essentially every high-performance analog category and the ability to offer almost any analog component that touches a DSP."
Burr-Brown will become part of TI's catalog analog organization. The move would be the third analog acquisition by TI in the past year. In October, TI acquired Unitrode Corp., and in November it acquired Power Trends.
Syrus Madavi, chairman, president, and chief executive of Burr-Brown. said there are "compelling synergies" between the two companies.
"TI's strength in DSP will introduce our high-performance analog and data converter products into new applications," Madavi said. "The makers of Internet appliances and communications systems will have the best of both worlds in one company, with complementary components to optimally meet their total signal processing requirements."
TI plans to issue 1.3 shares of its common stock for each outstanding share of Burr-Brown common stock. The acquisition, which is contingent on approval by Burr-Brown stockholders and antitrust review, is expected to be completed by the end of the third quarter.