Perhaps we shouldn’t be surprised by Analog’s move; the analogue market has a relatively large number of players and consolidation has been on the cards for some time.
After the deal closes, Analog is likely to have annual sales of around $4bn, making it the second largest company in the analogue sector, but still some way behind Texas Instruments.
Analog was rumoured to be active during last year’s M&A mania, but its target was said to be Maxim Integrated. However, bringing Linear under it wing appears to make sense: there is not a great deal of overlap between the two portfolios.
The two companies have had different business strategies. Analog has had a broader technology focus – at one time, it was a leading player in the DSP sector – and hasn’t been averse to the odd acquisition or two. Linear, by contrast, has retained a close focus on high performance analogue and has grown its business organically.
The burning question, however, is whether the acquisition will, in the words of Linear co founder Bob Swanson, be ‘a combination where one plus one truly exceeds two’. Time will tell.
