According to Reuters, said U.S. chip giant ADI will be bought for $14.8 billion chip maker Linear. This will be the semiconductor industry over the past two years buying spree is the latest in a deal.
ADI's offer is $46 per share in cash, as well as the Linear $0.2321 per share stock exchange to buy. This kind of stock and cash in the form of the Linear valuation to $60 per share, a Linear premium over 24% on Monday.
ADI hope through the acquisition of Linear increase profitability, and improve themselves in the simulated chip market share. Now the market is fragmented. Analog chips used to process signals such as sound, light, temperature and converts the signals into digital signals. This type of chip is the core of the smart phones and intelligent device connected to the Internet.
Vincent, chief executive of ADI - roche said in a statement, "our products not only is the industry leader, and products is highly complementary. Our products help solve user interaction in physical and digital technology in the biggest and the most difficult challenges."
Due to high profits, with many engineering talent, Linear is regarded as the most attractive takeover targets in the semiconductor industry. Analysts have pointed out that ADI or Texas instruments are interested in purchasing Linear.
ADI and Linear power management chip production, data converters, amplifier, and these products are used in almost all of the electronic products. The deal that the merged company the total value of about $30 billion.
In 2014, ADI also carried out a big acquisition. The ADI at more than $2 billion buying American Hittite Microwave company.
On Tuesday, Linear's shares closed at $62.49, or nearly 29%, to its highest level since 2001. ADI's share price rose to 52 week high.
The deal is expected to be added to the ADI immediately adjusted earnings per share and free cash flow.