(Reuters) - Chipmaker Analog Devices Inc (O:ADI) said it would buy Hittite Microwave Corp (O:HITT) in a deal valued at $2 billion (1.19 billion pounds).
Analog will pay $78 per share in cash, which represents a premium of 28.8 percent to Hittite Microwave's Friday close of $60.56 per share.
Analog said it expected to fund the acquisition through cash on hand and short-term debt.
(Reporting by Lehar Maan in Bangalore; Editing by Kirti Pandey)