This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Analog Devices Bids $2B for Hittite Microwave

Stocks in this article: ADI HITT

NEW YORK (The Deal) -- Semiconductor company Analog Devices (ADI) said Monday it would acquire rival Hittite Microwave (HITT) in a $2 billion deal that would boost its radio frequency and signal conversion chip offerings.

Terms of the deal call for Analog to pay $78 per share for Chelmsford, Mass.-based Hittite, a premium of 28.8% over the target's $60.56 Friday close.

Hittite manufactures integrated circuits, modules and subsystems for radio frequency microwave and millimeter wave applications. The company's chips are used in cellular, optical and satellite communications, in medical imaging and in defense electronics.

Analog Devices, of nearby Norwood, Mass., said that the purchase would help it grow in the industrial and communications infrastructure markets.

"Our combined capabilities will enable us to bring more complete solutions to our customers and address more of the industrial, communications infrastructure, and automotive markets," said Analog Devices CEO Vincent Roche in a statement. "We welcome the very talented Hittite team, as we together leverage our strong product portfolios and customer relationships to create greater value for all our stakeholders."

Hittite, which went public in 2005, last month bought wideband amplifier module maker Keragis Corp. of San Diego for an undisclosed sum.

Company CEO Rick D. Hess said, "I look forward to joining Analog Devices and I am confident our combined efforts will accelerate the course of innovation throughout cellular and microwave communications infrastructure, automotive, industrial instrumentation, aerospace and defense."

The agreement is the second billion-dollar-plus semiconductor deal announced in recent months, following radio frequency component maker RF Micro Devices Inc.'s February announcement it would acquire TriQuint Semiconductor Inc. for about $1.5 billion.

Credit Suisse Group's Steve Geller, David Wah and Ernie Ruehl, and WilmerHale's Mark Borden, Jay Bothwick and Joe Conahan advised Analog Devices on the deal. Hittite received financial advice from a Deutsche Bank AG team including Mark Keene, David Locala and Jim Stynes, and legal counsel from Foley Hoag LLP's Bob Sweet, Bill Kolb, Alex Aber, Joe Basile, Dan Clevenger, Nell Richmond and James Schneider. Skadden, Arps, Slate, Meagher & Flom LLP advised Deutsche Bank.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs