Summary
Texas Instruments Incorporated (TXN) has announced a definitive agreement to acquire Burr-Brown Corporation for approximately $7.6 billion, based on the closing price of TXN stock on June 21, 2000. This strategic acquisition involves a stock-for-stock transaction where Burr-Brown shareholders will receive 1.3 shares of TI common stock for each share of Burr-Brown common stock they own. Options and convertible notes of Burr-Brown will also be adjusted to convert into 1.3 shares of TI common stock. The transaction is subject to customary closing conditions, including the approval of Burr-Brown's stockholders and regulatory clearance under the Hart-Scott-Rodino Antitrust Improvements Act, as well as comparable foreign governmental entities. The filing also notes that Burr-Brown has provided TI with an option to acquire a significant number of its shares under specific circumstances, and certain Burr-Brown management and directors have agreed to vote in favor of the merger. This move signals TI's intent to strengthen its market position and expand its product portfolio through a substantial acquisition.
Key Highlights
- 1Texas Instruments (TXN) agrees to acquire Burr-Brown Corporation.
- 2The acquisition is valued at approximately $7.6 billion, based on TXN's stock price as of June 21, 2000.
- 3The transaction is a stock-for-stock merger, with Burr-Brown shareholders receiving 1.3 shares of TI common stock per Burr-Brown share.
- 4Options and convertible notes of Burr-Brown will also be converted into TI common stock at a ratio of 1.3 shares.
- 5The merger is contingent upon approval from Burr-Brown stockholders.
- 6Regulatory approval is required, including under the Hart-Scott-Rodino Antitrust Improvements Act.
- 7Burr-Brown has granted TI an option to acquire a significant stake in the company under certain conditions.