Analog Devices and Linear Technology have announced they have entered into a definitive agreement under which Analog Devices will acquire Linear Technology. Analog says that the cash and stock transaction values the combined company at approximately $30 billion.

The transaction is expected to close by the end of the first half of calendar year 2017.

The Wall Street Journal reports that the transaction itself is valued at $14.8 billion—or a 24% premium to Linear’s closing share price on Monday.

The Journal notes that the chips the two companies make have low ASPs but yield high profit margins because they can be produced in facilities that were paid off years ago.

The Journal further reports that the combination will reduce Analog’s reliance on key customer Apple and create a stronger rival to analog-chip leader Texas Instruments.

For its part, Apple reported a 27% drop in quarterly profit as it contends with a slump in iPhone sales.

Daisuke Wakabayashi at the Journal writes, “In an interview, Apple Chief Executive Tim Cook said iPhone demand was better than the sales figures showed, because it reduced inventory of the smartphone by more than four million units in its retail channels. He said he also was encouraged by iPad revenue returning to growth for the first time in 10 quarters and the continued strong growth in revenue for Apple’s services.”