According to foreign media reports, the analog IC companies the DE bono (ADI) has announced that it would take cash and stock purchase, merger and acquisition for $14.8 billion trade LingLiEr (Linear Technology). This deal if approved by the shareholders meeting, a combination of analog semiconductors pair will be popular in recent years, major semiconductor manufacturers add a merger.
According to the EE Times reported, according to the trade terms, ADI will be 0.23 $46 per share in cash and shares ADI acquisition of Linear value is equivalent to $60 per share, and on July 25, Linear closing price of $48.47, compared to 24% premium.
The root According to market research firm IC Insights published data analog IC sales rankings in 2015, the fourth highest ADI, Linear ranked eighth, the two companies add up, the market share of 9%, will surpass the fly ling (Infineon), after ti (Texas Instruments), the second largest analog IC manufacturers.
ADI President and chief executive Vincent Roche think that this is at the right time for the right deal. Simulation industry analyst Steve Ohr, says ADI with Linear although is industry leader of the world's top ten, but the products are highly complementary. Data converter ADI26.7 $2015 is the main source of revenue, the contribution of power management IC is only $150 million to $200 million, and ADI lacks this piece, is the strengths, Linear combination can enhance product portfolio of ADI.
The madness of semi conductor industry merger and acquisition has already lasted more than two years, in 2015 alone, the semiconductor industry's m&a deal amount more than $100 billion. Such as Mr Anwar high-tech (Avago Technologies) and Broadcom (Broadcom) $37 billion acquisition, Intel (Intel) $16.7 billion deal to buy Altera, grace and wisdom pu (NXP) and Freescale (Freescale) $11.8 billion acquisition and so on, a heavyweight trading is done during this period.
ADI said the company after the merger, Roche and ADI chief financial officer David Zinsner will maintain the existing position, ADI and plans to set up by the two companies each function unit composed of representatives of the leadership team.
Linear co-founder and executive chairman Bob Swanson also issued a statement, said the Linear board members agree that after 35 years of organic growth, and ADI merger would create more value for shareholders and further upward potential.
Ohr said that over the past two years the ADI special focus on military and industrial electronic product line, on the other hand, Linear will focus on marketing data converter, power amplifier, such function blocks, the two companies merge would extend the ADI element standard product lineup.
Linear's shares rose nearly 30% during the day's trading case reports, the deal is expected to be completed first half 2017.
