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Nat'l Semi buys ComCore
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April 24, 1998: 2:15 p.m. ET
Company purchases circuit maker for $122M to boost networking products
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NEW YORK (CNNfn) - National Semiconductor Corp. said Friday it has signed a definitive agreement to acquire ComCore Semiconductor Inc. for about $122 million in cash.
ComCore is a privately held maker of integrated circuits for computer networks.
National Semiconductor, which makes chip components, said it expects to take a charge between $85 million and $95 million for in-process research and development. The company expects to close the deal at the end of the current quarter, ending May 31.
On Wednesday, National Semiconductor announced that it will lay off about 1,400 employees worldwide, about 10 percent of its workforce, due to softness in the market.
But some analysts said the job cuts reflected a changed company focus from networking products to developing chips for low-cost personal computers.
The company announced earlier this month that it is developing a way to incorporate most PC chips onto a single chip, which could drive prices of new computers below $500.
Eliot Glazer, an analyst at Du Pasquier & Co., said the purchase of ComCore may be a way for National Semiconductor to shore up its development of a PC on a single chip.
"This strategy doesn't seem to have developed as quickly as National Semiconductor would have liked," Glazer said. "In the last 12 months, National Semiconductor has lost market share in the analog and mixed-signal technology market. This (purchase) may be an attempt to put analog and mixed-signal capabilities onto their single-chip solution."
Shares of National Semiconductor (NSM) fell 7/16 to 22-5/16 in midday trading. 
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