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Analog Devices acquires Linear Technology

Continuing the recent series of mergers, Analog Devices will acquire Linear Technology. Both companies produce CAN transceivers. The consequences for the CAN market remain to be seen.

(Photo: Analog Devices)

Analog Devices and Linear Technology have announced that they have 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. Following the transaction close, Vincent 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. Both companies anticipate a combined leadership team with strong representation from both firms 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.

Analog Devices designs and manufactures semiconductor products and solutions. Linear Technology produces power management, data conversion, signal conditioning, RF and interface ICs, µModule subsystems, and wireless sensor network products. Both companies produce CAN transceivers, Analog Devices the isolated ADM3054 for example, and Linear Technology the low power LTC2875. This merger follows the merger of other semiconductor producers. Last year, NXP and Freescale became one, Infineon acquired IR International Rectifier, and Microchip Atmel. It remains to be seen if this series of mergers will diminish the range of available CAN transceivers.

“The combination of Analog Devices and Linear Technology brings together two of the strongest business and technology franchises in the semiconductor industry,” said Vincent Roche, President and Chief Executive Officer of Analog Devices. “Our shared focus on engineering excellence and our highly complementary portfolios of industry-leading products will enable us to solve our customers’ biggest and most complex challenges at the intersection of the physical and digital worlds. We are creating an unparalleled innovation and support partner for our industrial, automotive, and communications infrastructure customers, and I am very excited about what this acquisition means for our customers, our employees, and our industry.”

Bob Swanson, Executive Chairman and Co-founder of Linear Technology, added, “For 35 years, Linear Technology has had great success by growing its business organically. However, this combination of Linear Technology and Analog Devices has the potential to create a combination where one plus one truly exceeds two. As a result, the Linear Technology Board concluded that this is a compelling transaction that delivers substantial value to our shareholders, and the opportunity for additional upside through stock in the combined company. […] By combining our complementary areas of technology strength, we have an excellent opportunity to reinforce our leadership across the analog and power semiconductor markets, enhancing shareholder value.”

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Publish date
2016-08-03
Company

Analog Devices
Linear Technology

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