Texas Instruments Incorporated announced Thursday that it has finalized its agreement to buy National Semiconductor for $25 a share in cash, or $6.5 billion, after the U.S. market closed.
The board of directors of both parties unanimously approved the resolution, and all relevant procedures are expected to be completed within 6-9 months.
National semiconductor jumped 71 percent to close at $24.06 on Friday, its highest close since December 12, 2007.
Texas instruments rose 1.7 percent to close at $34.69.

It is understood that deyi has 30,000 analog IC products, a wide range of customers and leading manufacturing technology, including the world's first 12-inch analog IC factory.
National semiconductor has 12,000 analog IC products, close customer relationships in the industrial power market, and excellent customer design tools.
Upon completion of the acquisition process, national semiconductor will become the analog IC division of dei, and analog IC sales will account for nearly 50 per cent of dei's revenues.

It is reported that in 2010, the global analog IC market size was $42 billion, and the sales volume of its products was $6 billion, accounting for 14% of the market, making it the leading manufacturer.
National semiconductor had revenue of $1.6 billion in 2010, or 3 percent of the market.

"With the acquisition of national semiconductor, ti will dominate the power management IC market," IMS Research said.

The merger will also cement a leading position in emerging fields such as LED driven IC, with Texas instruments and national semiconductor holding the top and second places in the market at about 26 per cent respectively.
"Ti has about 19 percent of the LED market and national semiconductor has about 7 percent," said Jamie Fox, an analyst at IMS Research.