DALLAS ( TheStreet) -- Texas Instruments ( TXN - Get Report) sees its $6.5 billion acquisition of National Semiconductor ( NSM) as a launch pad for selling analog chips into a vast array of everyday electrical devices, according to the company's CFO Kevin March.

"The combined portfolio of products can sell into any electrical device anywhere in the world," he told TheStreet. "Anything that has electricity going through it will be an opportunity for us to sell analog semiconductors into."
Texas Instruments CFO Kevin March says the company's Nat Semi deal opens the door to a vast array of electrical devices.

Analog chips play an increasingly crucial role in everyday life, converting real-world signals such as sound, pressure, temperature and electricity into the 1s and 0s used in the digital world.

March noted the use of analog chips in LED lighting, cars, security cameras and TVs as a growing source of revenue. The CFO also sees a window of opportunity for Texas Instruments in the emerging smart energy grid market, where big tech firms including IBM ( IBM) and Oracle ( ORCL) have already made significant investments.

"What makes a smart grid is smart semiconductors," said March. "We're already seeing demand occur there."

The CFO explained that National Semi will add 12,000 analog parts to his company's 30,000-strong analog portfolio.

March also dismissed the suggestion that the National Semi deal was the result of the recent challenges at Nokia ( NOK), one of its biggest customers. "Absolutely not," he said. "This was part of our ongoing strategic review to see opportunities that dovetail with our skill set."

The $6.5 billion price tag for the deal has also been closely scrutinized -- Texas Instruments is paying a premium of almost 80% for National Semi.

"We think that it's a very effective price and acquisition for our shareholders," said March. "Within three to four years after the acquisition's close, we would expect that our return on this acquisition would exceed our cost to capital."

The finance chief also told TheStreet that he is confident that the deal will gain regulatory approval, explaining that the combined companies will still only account for 17% of the total analog semiconductor market. "The analog market is extremely competitive," he said, adding that there is little overlap in the two companies' product portfolios.

Texas Instruments expects the deal to close in the next six to nine months.

Speaking on CNBC Tuesday, Texas Instruments CEO Rich Templeton discussed the analog market's strong "financial model," which March explained during his interview with TheStreet.

"The R&D that you spend on analog is relatively small compared to other semiconductor segments," he said. "The shelf life of analog products can be ten years or longer -- you get a tremendously long usage for your capital assets."

Shares of Texas Instruments dipped 3 cents, or 0.09%, to $34.72 on Wednesday, while National Semi's stock crept up 6 cents, or 0.25%, to $24.12.

--Written by James Rogers in New York.

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