SAN FRANCISCO — Texas Instruments Inc. is buying National Semiconductor for $6.5 billion in a marriage of two of the world’s premier makers of analog chips, which are widely used in electronics to transform signals such as sound into digital form that computers can understand.
In scooping up National Semiconductor, TI is getting a storied Silicon Valley company whose history stretches back more than 50 years and is known for its power management chips.
The deal is the latest example of consolidation among big technology players as trends such as the explosion in smartphones have shaken up the competitive landscape.
TI has agreed to pay $25 per share. The all-cash deal represents a 78 percent premium over National Semi’s stock price before the deal was disclosed.
National Semiconductor shares surged $10.20 to $24.27 in extended trading. TI shares fell 62 cents to $33.49.
“This acquisition is about strength and growth,’’ TI chief executive Rich Templeton said in a statement.
TI said the analog business will rise to about half of the company’s overall revenue when the deal closes, which it expects will be within six to nine months.