DALLAS -- Texas Instruments Inc. here today announced it will acquire Burr-Brown Corp. of Tucson, Ariz., for stock valued at about $7.6 billion. The acquisition is aimed at primarily strengthening TI's product offerings in the data converters and amplifier segment of the analog chip market.
"We are as serious about analog as we are about DSP," declared Tom Engibous, president, CEO and chairman of TI, which is ranked the market share leader in analog ICs and digital signal processors. He added that the acquisition will mean "that 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."
TI increased its analog portfolio with a couple of key acquisitions in 1999. First it bought Unitrode Corp. for $1.2 billion in stock to increase its position power management semiconductors for battery management (see July 26, 1999, story). In the fall, TI acquired Power Trends Inc. of Warrenville, Ill., a maker of plug-in power supplies that use analog chip technology (see Oct. 4, 1999, story).
Burr-Brown is a long-time supplier of analog semiconductor with digital signal processing technologies embedded in a number of products. In 1999, the 44-year-old Tucson company reported revenues of $291.4 million and a net income of $45.7 million. Burr-Brown has a manufacturing facility at its headquarters and two technology development centers in Atsugi, Japan, and Livingston, Scotland. The company employs about 1,500 people worldwide.
"TI's strength in DSP will introduce our high-performance analog and data converter products into new applications," said Syrus Madavi, president, CEO and chairman of Burr-Brown. "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," he said "Our combined force of analog and DSP technical experts in the field will deliver unmatched support as our customers develop their systems."
TI's Engibous said, "Burr-Brown's product position accelerates our data converter product roadmap by several years. Together we will extend and expand the data converter portfolio much faster than either company could alone."
The Dallas company said it plans to integrate its advanced process technologies with Burr-Brown's design expertise to produce products for applications that require the highest levels of precision and performance.
Under the acquisition agreement, TI will issue 1.3 shares of its common stock for each outstanding share of Burr-Brown common stock. TI and Burr-Brown said they expect the acquisition to be completed by the end of the third quarter 2000.