Norwood's Analog Devices to acquire California rival for $15B

Analog Devices, a Norwood semiconductor firm, announced Tuesday it will acquire California-based rival Linear Technology Corp. in a deal worth $14.8 billion in cash and stock. The acquisition means that Analog Devices will be the "premier" global analog technology company with about $5 billion in anticipated annual revenues, according to a release from the two companies.

Shares of Analog Devices (Nasdaq: ADI) were up by about 4 percent to about $63 on Tuesday afternoon, representing a market capitalization of $20 billion. The acquisition of Linear Technology (Nasdaq: LLTC), headquartered in Milpitas, Calif., will value the combined company at about $30 billion, according to a release. Linear's stock was up 29 percent to $62.50 as of Tuesday afternoon.

Vincent Roche, president and CEO of Analog Devices, said in a prepared statement that the deal will "enable us to solve our customers' biggest and most complex challenges at the intersection of the physical and digital worlds."

"We are creating an unparalleled innovation and support partner for our industrial, automotive and communications infrastructure customers, and I am very excited about what this acquisition means for our customers our employees and our industry," he said in the statement.

Roche will continue to serve as president and CEO of the combined company, and the combined company will use the name Analog Devices Inc. and continue to trade under its existing Nasdaq symbol.

Analog employed approximately 9,700 individuals worldwide as of last October, according to a regulatory filing. Linear had 4,868 employees as of June 2015. Analog's high-performance chips are used in sectors ranging from health care to security and aerospace, and the firm said it has 100,000 customers and 2,200 patents.

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