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.
