Analog Devices Acquires Linear Technology for $30 Billion

On July 26, Analog Devices, Inc. and Linear Technology Corporation entered into a definitive agreement under which Analog Devices will acquire Linear Technology in a cash and stock transaction that values the combined enterprise at approximately $30 billion. The transaction is expected to close by the end of the first half of calendar year 2017. Thus the concentration in the (power) semiconductor industry is accelerating.

Following the transaction close, Mr. Roche, President and CEO of Analog Devices will continue to serve as President and CEO of the combined company, and David Zinsner, SVP and CFO of Analog Devices, will continue to serve as SVP and CFO of the combined company.  Analog Devices and Linear Technology anticipate a combined company leadership team with strong representation from both companies across all functions.  The Linear Technology brand will continue to serve as the brand for Analog Devices’ power management offerings.  The combined company will use the name Analog Devices, Inc. and continue to trade on the NASDAQ under the symbol ADI. 

Under the terms of the agreement, Linear Technology shareholders will receive $46.00 per share in cash and 0.2321 of a share of Analog Devices common stock for each share of Linear Technology common stock they hold at closing.  The transaction values Linear Technology at approximately $60.00 per share, representing an equity value for Linear Technology of approximately $14.8 billion.  Post-closing, Linear Technology shareholders will own approximately 16% of the combined company on a fully-diluted basis. Analog Devices intends to fund the transaction with approximately 58 million new shares of Analog Devices common stock, approximately $7.3 billion of new long-term debt, and the remainder from the combined company’s balance sheet cash.  The new long-term debt is supported by a fully underwritten bridge loan commitment and is expected to consist of term loans and bonds, with emphasis on pre-payable debt, to facilitate rapid deleveraging.  AS

www.analog.com, www.linear.com