(Photo by by Alexandru Csete)
Chipmaker Analog Devices said on Monday it has agreed to buy Hittite Microwave Corporation, which manufactures high-performance integrated circuits and radio frequency microwave instruments for civilian and military use, in an all-cash deal worth more than $2.5 billion.
Norwood, Mass.-based Analog Devices will pay $78 per share for Hittite, representing a 29 percent premium over the target’s Friday closing price. The boards of directors of both companies have approved the deal, which is expected to close in the third quarter of 2014 subject to regulatory approval, Analog said in a press release.
Boston-based Wilmer Cutler Pickering Hale and Dorr is representing Analog in the transaction, while Foley Hoag is counseling Hittite.
Monday’s deal represents the third acquisition of a U.S. maker of integrated circuits for more than $1 billion this year, according to Bloomberg’s data analysis.
Vincent Roche, president and chief executive officer of Analog, said that Hittite’s strength in radio frequency microwave and millimeter-wave technology would complement Analog’s expertise in radio frequency and signal conversion. “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,” he said in a news release.
Rick Hess, president and CEO of Chelmsford, Mass-based Hittite, 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.”
Advising Analog on the deal are Wilmer corporate partners Mark Borden, Jay Bothwick and Joseph Conahan, with help from partner James Burling; real estate partner Doug Burton; employee benefits partner Scott Kilgore; antitrust partner Hartmut Schneider; and intellectual property partners Michael Bevilacqua and Monica Grewal. Also advising are tax partner Bill Caporizzo; government contracts partner Barry Hurewitz; and environmental partner Robert Kirsch. Wilmer associates included Colin Beauvais, Christie DiNapoli, Adam Holmes, Alison McKinney and Trevor Rozier-Byrd.
Margaret Seif is Analog’s general counsel.
Foley Hoag’s team for Hittite was led by mergers and acquisitions partner Bob Sweet, along with co-managing partner Bill Kolb, business department deputy chair Alex Aber and partner Joe Basile. Associates Dan Clevenger, Nell Richmond and James Schneider assisted. Foley Hoag has been advising Hittite for many years and has acted as their general counsel since helping to take the company public in 2005, a spokeswoman said.
Skadden, Arps, Slate, Meagher & Flom represented Deutsche Bank, financial adviser to Hittite in the deal. Skadden’s team is composed of New York-based mergers and acquisitions partner Eileen Nugent and counsel Timothy Fesenmyer.