Analog Devices to Buy Linear Technology for $14.8 Billion

  • Acquirer reports profit, sales beat estimates in the quarter
  • Purchase to be funded partially by $7.3 billion of new debt

Why Analog Devices Would Want to Buy Linear

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Analog Devices Inc. agreed to acquire Linear Technology Corp. for about $14.8 billion, potentially restarting a scramble by chipmakers to add scale amid record industry consolidation.

Analog will pay $60 a share for rival Linear, in cash and stock -- a premium of 24 percent to its closing price Monday -- the two companies said in a statementBloomberg Terminal Tuesday. They expect to close the transaction by the first half of 2017.