Analog Devices to Buy Hittite Microwave [Health & Beauty Close - Up]
(Health & Beauty Close - Up Via Acquire Media NewsEdge) Analog Devices (ADI) and Hittite Microwave reported that the two companies have entered into a definitive agreement whereby ADI will acquire Hittite for $78 per share in cash.
According to a media release, the closing price of Hittite's common stock on June 6, was $60.56 per share.
The companies noted this agreement reflects a total enterprise value for Hittite of approximately $2 billion.
ADI expects to fund the acquisition through a combination of cash on hand and short-term debt financing.
The Boards of Directors of each company have approved the transaction, which is expected to close near the end of ADI's third fiscal quarter of 2014, subject to regulatory approvals and other customary closing conditions.
The transaction is expected to be accretive to ADI's non-GAAP earnings per share.
"Hittite's strength in RF, microwave, and millimeter wave technology complements ADI's RF and signal conversion expertise," said Vincent Roche, ADI President and CEO. "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."
Rick D. Hess, President and Chief Executive Officer of Hittite added, "We are delighted to join forces with ADI, a premier company that shares Hittite's passion for solving complex challenges for customers. 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."
ADI also reaffirmed financial guidance for its third quarter of fiscal year 2014, for revenue to increase in the range of 1 percent to 5 percent, and excluding any one-time items, for diluted earnings per share to be in the range of $0.60 to $0.64.
Credit Suisse acted as exclusive financial advisor to Analog Devices, and WilmerHale served as its legal advisor. Deutsche Bank acted as exclusive financial advisor to Hittite. Foley Hoag acted as legal advisor.
ADI and Hittite hosted a joint conference call on June 9, at 8am ET to discuss the acquisition.
A replay of the call is available and may be accessed for up to two weeks after the call by dialing 855-859-2056 (replay only) and providing the conference ID: 58177775, or by visiting ADI's investor relations page.
Presentation slides accompanying the webcast are also accessible at the company's investor relations page.
Analog Devices (ADI) provides data conversion and signal conditioning technology.
Hittite Microwave (HITT) designs and develops high performance integrated circuits, modules, and subsystems for technically demanding radio frequency (RF) microwave and millimeter wave applications.
Webcast information and complete details:
((Comments on this story may be sent to firstname.lastname@example.org))
(c) 2014 ProQuest Information and Learning Company; All Rights Reserved.
[ Back To TMCnet.com's Homepage ]