A $30 billion merger is more evidence of the tech market’s most dominant trend right now
#AnalogDevices has struck a deal to buy chipmaker #LinearTechnology, the companies announced on Tuesday. The deal values Linear Technology at $14.8 billion, or $60 per share. The value of the combined enterprise will be $30 billion. Shares of Linear Technology were halted for trade up about 29% at $62 per share after news of the deal was broken by Bloomberg. Analog Devices shares were up about 4%. Stocks across the semiconductor space were broadly higher on Tuesday, with notable gainers including Maxim Integrated (+5%), NXP Semiconductors (+4%), Microsemi (+4%), and Semtech (+3%). Texas Instruments, one of the closest competitors to a combined Analog-Linear, also jumped, with shares up more than 9%. On Monday, after the market closed, Texas Instruments reported earnings that beat expectations. There has been a frenzy of multibillion-dollar deals in the tech industry over the past 18 months, including #Intel ‘s takeover of #Altera, #Avago ‘s acquisition of #Broadcom, and #Dell ‘s $67 billion takeover of #EMC. More recently, Dutch chip-making company #ASML bought Taiwan’s Hermes #Microvision for $3.1 billion, and #NXPSemiconductors sold its standard-products business to a group of Chinese investors for $2.75 billion.
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