Analog Devices to buy Linear Technology in chips deal

Analog Devices says it’s buying fellow chipmaker Linear Technology Corp. for roughly $14.8 billion.

Analog Devices Inc. said Tuesday its offer is worth about $60 per share, 24 per cent more than Linear’s closing price Monday. The Norwood, Massachusetts company is offering $46 in cash and 0.2321 of Analog Device stock for each Linear share.

Analog Devices says the combined company will have annual revenue of about $5 billion and aims to reach $150 million in cost savings 18 months after the deal closes.

It plans to issue new stock and long-term debt to fund the purchase.

The transaction has been approved by the boards of both companies and is expected to close in mid-2017.

Linear Technology is based in Milpitas, California.