Analog Devices buys Linear Technology

NORWOOD, Massachusetts. Analog Devices, Inc. officials announced the pending acquisition of Linear Technology Corp. for a cash and stock transaction that values the combined venture at about $30 billion. With the merge of the companies, officials anticipate an approximate $5 billion in annual revenues in the analog industry with data converters, power management, amplifiers, interface, RF, and microwave products.

Linear Technology shareholders will receive $46.00 per share in cash and 0.2321 of a share of Analog Devices common stock under the terms of the agreement. The transaction values the company at $60.00 per share, giving the company an equity value of $14.8 billion. Post-closing, official say, Linear Technology shareholders will own approximately 16 percent of the merged company on a fully diluted basis.

Vincent Roche, President and Chief Executive Officer of Analog Devices and David Zinsner, Senior Vice President and Chief Financial Officer of Analog Devices, will continue in their role and the combined company will use the Analog Devices brand, as well as continue to trade on NASDAQ under the ADI symbol. The Linear Technology brand will serve as the brand for Analog Devices’ offerings.

The board of directors approved the transaction and closing is expected by mid-2017. It is still subject to regulatory approvals in various jurisdictions, the approval of Linear Technology’s shareholders, and other customary closing conditions.

Funds for this transaction will come from Analog Devices approximately 58 million new shares of common stock, approximately $7.3 billion of new long-term debt, and will come from the merged 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. Officials state the transaction is expected to be immediately accretive to Analog Devices’ non-GAAP EPS and free cash flow. Analog Devices also expects to achieve $150 million of annualized run-rate cost synergies within 18 months post transaction close.

For more information on Analog Devices, visit www.analog.com. For more information on Linear Technology, visit www.linear.com.

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