Analog Devices Inc., a maker of semiconductors used in cars, smartphones and televisions, agreed to buy smaller chipmaker Hittite Microwave Corp. in a deal worth about $2 billion to expand its offerings.

Analog Devices will acquire Hittite for $78 a share in cash, according to a statement today. That’s 29 percent more than Hittite’s closing price on June 6. The boards of both chipmakers approved the transaction.

Acquiring Chelmsford, Massachusetts-based Hittite will give Analog Devices a broader line of chips and signal processors used in wireless communications. Analog Devices aims to accelerate growth in the industrial, communications infrastructure and automotive markets. The transaction will increase Analog Devices’s earnings per share, excluding some items, according to the statement.

“Hittite’s product focus is highly complementary to our own,” Analog Devices chief executive Vincent Roche said on a conference call today. “From a growth perspective, this transaction expands product offerings in our key end markets and allows us to address new opportunities.”

Chip Deals

The deal is the third acquisition of a U.S. maker of integrated circuits for more than $1 billion this year, and the largest, according to data compiled by Bloomberg. It topped RF Micro Devices Inc.’s planned purchase of TriQuint Semiconductor Inc. for about $1.5 billion.

Shares of Norwood, Massachusetts-based Analog Devices have gained 16 percent in the past year, underperforming the 20 percent increase in the Standard & Poor’s 500 Index. Hittite, which had risen 12 percent in the 12 months through June 6, jumped to $77.75 at 9:35 a.m. in New York. Analog Devices rose 4.3 percent to $54.96.

The transaction is expected to close at the end of Analog Devices’s fiscal third quarter, in about two months.

Credit Suisse Group AG advised Analog Devices on the transaction, and WilmerHale served as its legal adviser. Deutsche Bank AG was Hittite’s financial adviser, while Foley Hoag provided legal advice.

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