Analog Devices is to acquire fellow US chipmaker Linear Technology in a $15bn deal
Massachusetts-based Analog Devices is to acquire fellow chipmaker Linear Technology in a deal worth $14.8bn (£11.3bn).
The tech firm announced that it had reached a definitive agreement with Linear, and would pay shareholders $46 per share in cash, alongside 0.2 shares of Analog stock for each Linear share held.
The offer represents a premium of nearly 24 percent to Linear's Monday close. The firms make power management chips, data converters and amplifiers that are used in almost all electronic products.
The deal values the newly combined businesses at a total of $30bn, with projected revenues of $5 billion.
Rumours of a deal saw Linear's stock surge to $62.42 yesterday, its highest since 2001, before being halted ahead of the announcement.