ADI to merge with Linear Technology
Analog Devices, Inc and Linear Technology Corporation will become a single entity as part of a newly announced acquisition. According to a press release from ADI, Linear Technologies the technology merger will add approximately $6 billion in value to the former company's "total addressable market."
The deal reportedly brings many benefits to both entities, as the merged companies will act as a joint industry leader. For business purposes, the two companies will be united under the joint name of ADI.
In the statement, Linear Technology's Co-Founder and Executive Chairman Bob Swanson described the history of his company as well as the benefits of the new merger, based on what both participating businesses will bring to the table. Each company's board of directors unanimously approved of the decision to merge.
"For 35 years, Linear Technology has had great success by growing its business organically," Swanson said, "However, this combination of Linear Technology and Analog Devices has the potential to create a combination where one plus one truly exceeds two."
Commenting on this new transaction, Business Insider connected it to the growing cultural shifts that are driving new technology sales. This includes hardware like flash memory chips and the systems that help sustain the cloud, the source said, as businesses focus on acquisitions that suit the new market.
By contrast, All About Circuits speculated that the deal could center around the Internet of Things. This concept, concerning enhanced technologies that all connect to the cloud, could build off the kinds of sensors which both Linear Technology and Analog Devices help produce.
The source also said that both companies in this deal match each other, since Linear Technologies and ADI each maintain a strong presence in the amplifier and data convertor sectors.