Linear Technology (LLTC) to be acquired by Analog Devices (ADI) for $14.8 billion

   

Analog Devices (ADI) announced plans to buy Linear Technology (LLTC) in a deal that values the fellow analog technology company at $14.8 billion. Under terms of the deal, Linear Technology shareholders will receive $46 in cash and 0.2321 shares of Analog Devices for each Linear share they own. Based on Monday's closing prices, the deal values Linear shares at $60.05, or a 24% premium. Linear's stock shot up 29% to $62.49 in afternoon trade prior to a trading halt, after Bloomberg reported the companies were in advanced talks. Analog Devices shares had run up 3.9% prior a halt. Analog Devices said it expects to fund the transaction with 58 million new common shares, which would increase the total shares outstanding by about 19%, about $7.3 billion in new debt and cash on hand. The deal is expected to immediately add to Analog Devices adjusted earnings upon closure, which is anticipated to occur in the first half of 2017.