In a major merger in the semiconductor industry, Analog Devices Inc. bought Linear Technology Corp. for nearly $15 billion.
California-based Linear has a large manufacturing campus in Camas that employs 290 people. Linear said that until the deal closes, it will be “business as usual” at its locations around the country.
“The deal is expected to close the first half of 2017, and we’ll know more at that time,” said Linear spokesman John Hamburger. “It’s too soon to comment on what’s going to happen after that.”
Mike Bomar, president of the Columbia River Economic Development Council, also said it was too early to gauge local effects but said “I don’t have any concerns.”
“Linear is an excellent corporate partner for this community and has been very involved with the CREDC and other related organizations in the area,” he said.
Linear manufactures circuits used in electronics ranging from cell phones to cars to medical devices.
Analog Devices, a 51-year-old circuit maker and marketer, is based in Norwood, Mass. The combined company will be valued around $30 billion, according to a press release.
“The combination of Analog Devices and Linear Technology brings together two of the strongest business and technology franchises in the semiconductor industry,” Vincent Roche, president and CEO of Analog Devices said in a statement. Roche will remain president of the combined company when the merger is complete.
“Analog Devices and Linear Technology anticipate a combined company leadership team with strong representation from both companies across all functions,” reads a press release. “The Linear Technology brand will continue to serve as the brand for Analog Devices’ power management offerings.”
Analog is paying the equivalent of $60 per share for Linear. When news of the merger broke last Tuesday, Linear saw its stock price soar from $48 to more than $62.
“For 35 years, Linear Technology has had great success by growing its business organically,” Bob Swanson, executive chairman and co-founder of Linear Technology, said in a statement. “However, this combination of Linear Technology and Analog Devices has the potential to create a combination where one plus one truly exceeds two … enhancing shareholder value.”
This isn’t the first merger with ramifications for the high-tech sector in Clark County this year. Sharp Corp., which has two subsidiaries in Camas that together employ 230 people, was bought out earlier this year by Taiwanese electronics giant Foxconn Technology Group. Local implications of that acquisition are still uncertain.
“While not the flashiest of industries, the fragmented chip market has been in mega-consolidation mode for over a year,” writes Bloomberg columnist Tara Lachapelle. “This probably won’t be the last big transaction we see.”
