Temescal

Semigas

CLICK HERE: free registration for Semiconductor Today and Semiconductor Today ASIACLICK HERE: free registration for Semiconductor Today and Semiconductor Today ASIA

Join our LinkedIn group!

Follow ST on Twitter

IQE

9 June 2014

Analog Devices to buy Hittite

Analog Devices Inc (ADI) of Norwood, MA, USA (which provides semiconductors for signal processing applications) has agreed to acquire Hittite Microwave Corp of Chelmsford, MA, USA (which designs and manufactures analog, digital and mixed-signal RF, microwave and millimeter-wave ICs, modules and subsystems as well as instrumentation) for $78 per share in cash. This represents a 29% premium on the closing price of Hittite’s common stock on 6 June of $60.56 per share.

The agreement reflects a total enterprise value for Hittite of about $2bn. ADI expects to fund the acquisition through a combination of cash on hand and short-term debt financing. The transaction is expected to be accretive to ADI’s non-GAAP earnings per share.

The boards of directors of each company have approved the transaction, which is expected to close near the end of ADI’s fiscal third-quarter 2014 (to end-July), subject to regulatory approvals and other customary closing conditions.

“Hittite’s strength in RF, microwave and millimeter-wave technology complements ADI’s RF and signal-conversion expertise,” says ADI’s president & CEO Vincent Roche. “Our combined capabilities will enable us to bring more complete solutions to our customers and address more of the industrial, communications infrastructure, and automotive markets,” he believes. “We welcome the very talented Hittite team, as we together leverage our strong product portfolios and customer relationships,” Roche adds.

“I am confident our combined efforts will accelerate the course of innovation throughout cellular and microwave communications infrastructure, automotive, industrial instrumentation, aerospace and defense,” comments Hittite’s president & CEO Rick D. Hess.

ADI also reaffirmed financial guidance for its fiscal third-quarter 2014, for revenue to increase by 1-5% and (excluding any one-time items) for diluted earnings per share to be $0.60-0.64.

See related items:

Hittite acquires assets of Keragis

Tags: Hittite Analog Devices

Visit: www.hittite.com

Visit: www.analog.com

Share/Save/Bookmark
See Latest IssueRSS Feed

AXT