Analog Devices, Inc. (ADI) to acquire Hittite Microwave Corp (HITT) for $2.45 billion

Posted Jun 10, 2014

Analog Devices, Inc. (NASDAQ:ADI) has announced that it is acquiring chip and component manufacturing company Hittite Microwave Corp (NASDAQ:HITT) for $2.45 billion in cash. This deal merges two Massachusetts-based companies that operate in different niches within the electronics industry.

Analog Devices (ADI) works on chips that converts radio and analog signals into digital form. Its products are made mostly from silicon and are used in factory-automation systems and portable electronic devices. ADI has around 3,000 employees.

Founded in 1985, Hittite has around 500 employees and builds high-frequency antenna chips made out of several types of materials, including gallium arsenide. Hittite’s products are generally used in aerospace and defense applications along with microwave communications. 

ADI will now have access to over 1,000 more products that ADI’s salesforce can promote. Analog Devices is buying Hittite for $78 a share, which is a 29% premium over Friday’s close. The deal will be funded through cash on hand and short-term debt financing.

ADI has around $4.8 billion in cash and short-term investments as of May 3. It also has cash held in overseas accounts to help pay for the transaction. The deal will add to ADI’s adjusted earnings and is expected to close at the end of the fiscal third quarter, ending July.

[Source: WSJ]