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US: Further consolidation for chipmakers

By  |  July 27, 2016
US: Further consolidation for chipmakers

Analog Devices Inc said on Tuesday it would buy fellow chipmaker Linear Technology Corp for about $14.8 billion, following SoftBank Group Corp’s $32 billion acquisition of British chip designer ARM Holdings which was announced on July 18, in a wave of consolidation that has swept the semiconductor industry in the past two years.

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    By buying Linear, Analog is hoping to increase its share in the fragmented market for analog chips, which process signals such as sound, light and temperature and convert them into digital signals. These chips are central to smart phones and such devices connected to the internet.

    Analog offered $46.00 per share in cash and 0.2321 a share for Linear which roughly values the company at $60 a share, a 24 percent premium to Linear’s closing share price on Monday.

    Full Content: Reuters

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