This will be a win/win situation for both companies - from the UK branch of Reuters:
Chipmaker Analog Devices to buy Hittite in $2 billion deal
Chipmaker Analog Devices Inc. said it would buy Hittite Microwave Corp. in a deal valued at $2 billion to strengthen its radio frequency (RF) and signal conversion chip offerings.
Analog will pay $78 per share in cash, which represents a premium of 28.8 percent to Hittite's Friday close of $60.56 per share.
"Hittite's strength in RF, microwave, and millimeter wave technology complements (Analog's) RF and signal conversion expertise," Analog Chief Executive Vincent Roche said in a statement.
The company, which makes chips that help translate pressure, temperature and sound into digital signal, said it expected to fund the acquisition through cash on hand and short-term debt.
The deal is expected to close by the end of the third quarter.
Hittite had cash and short-term investments of $492.4 million and no debt as of March 31, according to Thomson Reuters data.
Analog also reaffirmed its revenue and adjusted profit forecast for the third quarter ending August.
Two strong well-managed companies with complimentary offerings. Analog Devices is one year shy of its 50th birthday while Hittite is 'only' 29 years old.