AD and LINEAR announced on July 26, 2016 that they had entered into a definitive agreement for Analog Devices to acquire Linear Technology in a cash and stock transaction with a combined market value of approximately $30 billion. Upon completion of the acquisition, Analog Devices will become the world's premier leading analog technology company with projected annual revenues of nearly $5 billion.
Under the terms of the agreement, upon closing, Stockholders of Linear Technology common stock will receive $46 in cash and 0.2321 shares of Analog Devices common stock per share. In connection with the transaction, Line Technology shares are valued at approximately $60 per share (1), representing an equity value of approximately $14.8 billion (1).
Vincent Roche, President and Chief Executive Officer of Analog Devices, said: 'The combination of Analog Devices and Linear Technology unites two of the strongest business and technology companies in the semiconductor industry. Together, we focus on engineering excellence, combining highly complementary, industry-leading products to solve our customers' toughest and most complex challenges when the real and digital worlds meet. We create an unparalleled innovation and support partner for customers in industrial, automotive and communications infrastructure. I am excited about the significance of this acquisition for our customers, employees and the industry.
Bob Swanson, Executive Chairman and co-founder of Linear Technology, added: 'For 35 years, Linear Technology has grown its business organically and successfully. However, the potential of the combination of Linear Technology and ADI is unlimited, and it is promising to truly achieve the effect of one plus one greater than two. As a result, Linear Technology's board of directors believes that this transaction is highly attractive and provides tangible benefits to shareholders, and the combined company's stock is expected to appreciate. Analog Devices is well known. The complementary combination of our technological strengths gives us an excellent opportunity to strengthen our leadership in the analog and power semiconductor markets and increase shareholder equity. Linear Technology and ADI will work together to advance technology and deliver innovative analog solutions to customers around the world. We are committed to working with the ADI team to ensure a smooth transition. '