Analog Devices buys rival Linear Technology for $14.8bn

27 Jul 201662 Shares

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Semiconductor-maker Analog Devices has acquired its rival Linear Technology, a supplier to Apple, for $14.8bn.

Analog Devices will pay $60 a share to acquire Linear Technology in a cash and stock deal, representing a premium of 24pc on its closing price on Monday.

Analog, which has a workforce of 1,200 people in Ireland and has been in Limerick for 40 years, is a world leader in the manufacture of analogue, mixed-signal and integrated circuits that go into all kinds of electronic equipment.

Approximately 20pc of the company’s patents have been filed by Irish-based workers.

‘The combination of Analog Devices and Linear Technology brings together two of the strongest business and technology franchises in the semiconductor industry’
– VINCENT ROCHE, ANALOG DEVICES

Shared focus

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Analog Devices workers in Limerick marking the 40th anniversary of the company in Ireland earlier this year

“The combination of Analog Devices and Linear Technology brings together two of the strongest business and technology franchises in the semiconductor industry,” said Vincent Roche, president and CEO of Analog Devices.

“Our shared focus on engineering excellence and our highly complementary portfolios of industry-leading products will enable us to solve our customers’ biggest and most complex challenges at the intersection of the physical and digital worlds.

“We are creating an unparalleled innovation and support partner for our industrial, automotive, and communications infrastructure customers, and I am very excited about what this acquisition means for our customers, our employees, and our industry.”

The acquisition will enable Massachusetts-headquartered Analog to close in on its biggest competitor, Texas Instruments, which recently upped the ante by buying another competitor, National Semiconductor.

It is a time of pivotal change in the semiconductor world, driven by M&A deals, new buying patterns and opportunities thanks to the explosion of the internet of things.

Analog Devices image via Shutterstock

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Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com