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CHELMSFORD (AP) -- Shares of Hittite Microwave Corp. shot up nearly 30 percent on Monday, after Norwood-based Analog Devices Inc. said it would buy the local company for $2.4 billion in cash.

The deal comes to $78 per share, about 29 percent higher than Hittite's Friday closing price of $60.56.

ADI expects to fund the acquisition through a combination of cash on hand and short-term debt financing.

Shares of Hittite closed Monday at $77.90, up $17.34 (28.6 percent).

ADI said Hittite's circuit-making technology complements its own offerings and helps it expand into industrial, communications infrastructure, and automotive markets.

ADI expects the deal to close in the third quarter and benefit its earnings. The company also reaffirmed guidance for the third quarter of 60 to 64 cents per share. Analysts expect 63 cents per share, according to FactSet.

As of March 31, Chelmsford-based Hittite had 31.4 million shares outstanding, implying a value of $2.4 billion for the total deal.

"We are delighted to join forces with ADI, a premier company that shares Hittite's passion for solving complex challenges for customers," said Hittite CEO Rick Hess, in a statement. "I look forward to joining Analog Devices and I am confident our combined efforts will accelerate the course of innovation throughout cellular and microwave communications infrastructure, automotive, industrial instrumentation, aerospace and defense.



ADI has a large manufacturing facility in Wilmington.

Hittite is headquartered at 2 Elizabeth Drive. It employs about 500 people and posted 2013 sales of $273.8 million.

It is unclear what impact the deal will have on the two companies' real estate.