What was announced today?

On July 26, 2016, Analog Devices, Inc. (NASDAQ: ADI) announced that it has entered into a definitive agreement to acquire Linear Technology (NASDAQ: LLTC) in a cash and stock transaction that values the combined enterprise at approximately $30 billion[1].  Upon completion of the acquisition, the combined company will be the premier high-performance analog technology company with leading positions across all key analog product categories and anticipated annual revenues of approximately $5 billion.

Why is Analog Devices acquiring Linear Technology?

This is the right combination at the right time.  In this competitive market, our customers are looking for partners in their innovation, engineering, and world-class supply chain support; not just suppliers. The addition of Linear Technology’s highly complementary portfolio of technologies and products to our own will create the industry’s most comprehensive suite of high-performance analog offerings. More importantly, this transaction will combine two of the industry’s leading engineering teams, creating an unparalleled innovation powerhouse capable of helping customers address their most complex analog and market challenges.

When is the transaction expected to close?

This transaction has been unanimously approved by the boards of directors of both companies.  Pending necessary shareholder, regulatory approvals and other customary closing conditions, we currently expect this transaction to close in the first half of calendar year 2017.

What is the combined revenue of Analog Devices and Linear Technology?

The combined revenue of Analog Devices and Linear Technology for FY2015 was approximately $5 billion.

What will be the name of the combined company?

The combined company will continue to be called Analog Devices, Inc.

How do the operations at Analog Devices and/or Linear Technology change between now and the close?

Until the close, we remain two independent companies. During the interim period though, we will be working closely with Linear Technology to ensure a smooth integration and transition upon close.

Will the Linear Technology brand remain standalone, or will it be integrated into Analog Devices like Hittite?

Analog Devices intends to maintain the Linear Technology high performance power management brand.

How many employees does Linear Technology have?

Linear Technology has approximately 4,900 employees worldwide.

The announced deal price ($14.8 billion) is significant – how will Analog Devices be financing this combination?

Analog Devices intends to fund the transaction with approximately 58 million new shares of ADI common stock, approximately $7.3 billion of new long-term debt, and the remainder from the combined 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.

[1] Based on Analog Devices’ 5 day volume weighted average price of $60.3215 as of July 21, 2016 per Bloomberg


July 26, 2016
5:00 pm EDT
Conference Call and Webcast →

ADI Media Contact

Gerald Kimber White

Linda Kincaid

ADI Investor Contact

Ali Husain

Linear Media Contact

John Hamburger
408-432-1900, Ext. 2419

Linear Investor Contact

Donald P. Zerio