Analog Devices and Linear Technology announced that they will combine.
I remember when Texas Instruments announced the purchase of Burr-Brown Corp in late 2000. I was at Burr-Brown at the time for 8 years and the $7.86B purchase price (Stock transfers—stocks were up at that time) was unheard of. I remember thinking that the combination of two such different cultures was going to be difficult with Burr-Brown being a relatively small company atmosphere vs. the huge size and breadth of product of TI. Well it had a couple of bumps here and there, to be expected, but the acquisition actually went pretty well and TI grew to be a true Analog company presence in the industry.
The ADI/LTC combination will be similar, I expect. LTC, run by Bob Swanson and Bob Dobkin is a unique organization with a relatively small company culture in which it’s said “nobody ever leaves”. Analog Devices is, in my estimation, an excellent organization and a little more unique than most as a very large company. I see ADI not your typical huge behemoth organization. It seems to be a little more employee-focused than most mega-organizations in my experience. Even some of the satellite groups, such as at their Greensboro, N.C. location, there is semblance of a small company culture (LTC is kind of a satellite group). When TI purchased Unitrode and Power Trends in the late 90s, they got a huge shot in the arm as a power management guru. This will do the same for ADI.
ADI acquiring RF capability with their Hittite Microwave deal a few years ago greatly broadened their product line to have the full solution in RF—they had the premier high speed data converters and amplifiers already which was half of the solution—it’s like they saw 5G coming. And, to me, ADI’s only weakness was in the Power Management area—so LTC will more than fill that gap and then some.
It remains to be seen how these companies will gel together, but I am optimistic about it from what I know about both companies and the people I know within them. This will be good for the electronics industry and is in reality not such a shock with acquisitions happening all around us.
More on this later. What are your thoughts?