As part of a definitive agreement worth $2 billion, Analog Devices Inc. (ADI) is set to acquire Hittite Microwave Corp. Although ADI has typically not been a very acquisitive company, a lot of deliberation went into the purchase, which is expected to close before the end of July 2014. ADI’s expertise in data conversion in the RF domain will be leveraged with Hittite’s RF, microwave, and millimeter wave technology strengths.

Stock prices are expected to grow for both companies as customers look forward to the single-supplier solution for backhaul, communications, and millimeter wave technologies. ADI hopes that its position in the RF domain and previous investment into the microwave and millimeter wave space will be complemented by Hittite’s portfolio. ADI also expects the proximity of ADI’s and Hittite’s Chelmsford, Mass. offices will create opportunities for co-location in the area to support the addition of Hittite’s approximately 520 employees. Although the Board of Directors for each company has approved the transaction, it is subject to regulatory approvals and other customary closing conditions.