Analog Devices to acquire Linear Technology for approximately $30 billion. A good acquisition move by Analog Devices, which supplies high precision operational amplifiers, analog to digital converters and such analog front-end and mixed signal ICs. It is number one/two in this market of signal conditioning/processing both the analog and digital areas. What was missing in the Analog Devices portfolio is a robust power supply IC offerings, that's exactly the Linear Technology is known for in the semiconductor market. There are some overlaps, but there are more complementing products.
Bob Swanson, Executive Chairman and Co-founder of Linear Technology, says Combination of Linear Technology and Analog Devices has the potential to create a combination where one plus one truly exceeds two. This comment can be agreed to some extent except for some overlapping categories.
Well this is about analog IC market, there is also another significant acquisition news in the digital semiconductor space, where a Japan-based company called Softbank to acquire world's number one processor and related intellectual property licensor ARM for approximately US$ 31 billion. This acquisition strengthens the opinion which can be made on the silicon IP companies: that is, one or the other day silicon IP companies - however big they are, final goal is to sell off the business. If not- they get into selling their own physical ICs in the market- like Rambus.
The difference in this case of ARM is, most the time the buyers are the top three electronics design automation software vendors such as Synopsys, Cadence and Mentor Graphics, who are becoming both IP as well as EDA software leaders.