Analog Devices To Acquire Hittite Microwave; Backs Q3 Forecast - Quick Facts

(RTTNews) - Analog Devices, Inc. (ADI) has inked a definitive deal to acquire Hittite Microwave Corp. (HITT) for $78 per share in cash. The closing price of Hittite's common stock on June 6, 2014 was $60.56 per share. This agreement reflects a total enterprise value for Hittite of around $2 billion.

ADI expects to fund the acquisition through a combination of cash on hand and short-term debt financing. The boards of each company have approved the transaction, which may close near the end of ADI's third fiscal quarter of 2014. The deal is expected to be accretive to ADI's non-GAAP earnings per share.

In addition, Analog Devices backed its third-quarter guidance for revenue to increase in the range of 1% - 5%, and excluding any one-time items, for earnings per share to be in the range of $0.60 - $0.64. Analysts project the company to earn $0.63 per share, on $716.09 million revenue for the third quarter.

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.