Analog Devices Inc. (ADI), a maker of semiconductors used in wireless-phone systems, will acquire Hittite (HITT) Microwave Corp. for about $2 billion to gain chips used by automakers and the military.
Analog Devices will pay $78 a share in cash for Chelmsford, Massachusetts-based Hittite, according to a statement today. That’s 29 percent more than Hittite’s closing price on June 6. Both chipmakers’ boards approved the deal.
Acquiring Hittite will give Analog Devices a broader line of products used in satellite gear, military radar and cars. The company is seeking to tap growing demand for chips that power advanced functions in daily life, such as blind-spot detection and automatic emergency braking in autos. The transaction will increase Analog Devices’ earnings per share, excluding some items, according to the statement.
“Hittite’s product focus is highly complementary to our own,” Analog Devices Chief Executive Officer Vincent Roche said on a conference call today. “From a growth perspective, this transaction expands product offerings in our key end markets and allows us to address new opportunities.”
This article appeared on www.bloomberg.com on Mon 9 June 2014. See article here
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