Texas Instruments to Buy Telogy Networks

Texas Instruments Inc., the leading maker of semiconductors used in cellular phones, said it agreed to buy communications software company Telogy Networks Inc. for $455 million in stock to gain customers in the surging market for sending voice and data over the Internet. TI will pay 4.1 million shares for closely held Telogy, which is backed by such companies as Motorola Inc. and Ameritech Corp. Telogy’s software will be combined with Texas Instruments’ chips in a package sold to communications equipment makers. Dallas-based Texas Instruments already works with Germantown, Md.-based Telogy, whose software was developed for TI’s digital signal processors. Telogy’s 110 employees will be added to the Texas Instruments work force. TI stock rose $4.31 to close at $100.94 on the New York Stock Exchange.