Texas Instruments announced plans to acquire National Semiconductor at a cost of $6.5 billion.

Under the terms of the agreement, TI will pay $25 per share in an all-cash transaction, practically transforming National Semiconductor into a branch of Texas Instruments.

TI Chairman Rich Templeton stressed that the acquisition is all about strength and growth. He praised National’s development team and products, noting that it will allow TI to offer an unmatched analog product portfolio.

National Semiconductor CEO Don Maclead said that the companies will complement each other very well and that TI’s product portfolio and sales force will enhance National’s profitable analog capability, particularly in the power management sector.