Analog Devices Inc. agreed to acquire Linear Technology Corp. for about $14.8 billion, potentially restarting a scramble by chipmakers to add scale amid record industry consolidation.
Analog will pay $60 a share for rival Linear, in cash and stock — a premium of 24 percent to its closing price Monday — the two companies said in a statement Tuesday. They expect to close the transaction by the first half of 2017.
Like its rivals, Analog Devices is looking to get bigger to close the gap with industry leader Texas Instruments Inc., the biggest maker of the semiconductors that perform basic tasks in electronics. By buying out a competitor, National Semiconductor Corp., and updating production, Texas Instruments says it has cheaper manufacturing and more product offerings than anyone else. Its stock hit a record this year.