NEW YORK (TheStreet) -- Analog Devices (ADI) - Get Report announced its acquisition of Linear Technology (LLTC) in a cash and stock transaction with a combined enterprise at $30 billion, CNBC's Seema Mody reported on "Closing Bell" Tuesday.
Analog excepts to see approximately $5 billion in anticipated annual revenues from the merger, Mody said.
Linear shareholders will receive $46 per share in cash and 0.2321 of Analog common stock for each share of Linear Technology stock they hold at the closing of the transaction. This values Linear Technology at $60 per share and an equity value of about $14.8 billion.
"The combination of Analog Devices and Linear Technology brings together two of the strongest business and technology franchises in the semiconductor industry," Analog Devices CEO Vincent Roche said in a statement.
Analog Devices and Linear Technology stocks were halted following the news, Mody said.
Reports of a possible acquisition sent shares of both semiconductor companies higher earlier today. Analog closed higher by 3.87% to $62.87 and Linear closed up by 29.01% to $62.53.
Separately, TheStreet Ratings team set this stock as a "buy" with a ratings score of B+. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. TheStreet Ratings team feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ADI