NEW YORK (TheStreet) -- Shares of Linear Technology (LLTC) are falling 4.01% to $60.03 on Wednesday morning as the chipmaker will be acquired by Analog Devices (ADI) for about $14.8 billion.

Analog said it would offer $46 per share in cash and 0.2321 a share for the Milpitas, CA-based company. The transaction values Linear at about $60 per share.

Once the deal is complete, Analog said it will be the premier global analog technology company with about $5 billion in expected annual revenue.

"The combination of Analog Devices and Linear Technology brings together two of the strongest business and technology franchises in the semiconductor industry," Analog CEO Vincent Roche said in a statement late yesterday. 

Norwood, MA-based Analog is looking to lift its profitability and increase its share in the fragmented market for analog chips, which process signals like sound and light and convert them into digital signals, Reuters noted. The chips are key to smart phones and devices that connect to the Internet.

Shares of Analog are rising 1.33% to $63.71 on Wednesday morning.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on Linear Technology stock.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins, solid stock price performance and notable return on equity. 

Recently, 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: LLTC

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