Thursday, May 15, 2008

Texas Instrument’s Telling Acquisition of Commergy Technology

Texas Instruments (TXN) just announced the acquisition of Commergy Technology. Terms and conditions were not disclosed and at this point it is entirely uncertain if the transaction will have a financial impact that would be noticeable to investors.

What is telling is that the folks at Texas Instrument felt compelled to make the acquisition. Disguised as a corporate acquisition they most likely have acquired intellectual property. There was no disclosure about key people staying with the company and if so for what length of time.

There is also no disclosure about any royalty arrangements back to the owners and or patent holders. So was it cash, shares, royalties or combinations thereof. Hard to assess the meaning of this one but TXN feels you should know about it.