Analog Devices to acquire Maxim Integrated Products for $21bn

Analog Devices (ADI), a US-based Semiconductor manufacturing company, has agreed to acquire Maxim Integrated Products, a manufacturer of analog and mixed-signal integrated circuits, in an all-stock deal worth about $21 billion.

Based in California, Maxim Integrated Products caters to the automotive, industrial, consumer, communications, and computing markets with its integrated circuits.

On the other hand, Analog Devices, which is based in Massachusetts, specializes in data conversion, power management, and signal processing technology.

Analog Devices said that the acquisition of Maxim Integrated Products will bolster its position as an analog semiconductor manufacturer with larger breadth and scale across various attractive end markets.

The strength of Maxim Integrated Products in the automotive and data center markets in combination with the strength of Analog Devices across the broad industrial, communications and digital healthcare markets are said to be highly complementary and in line with key secular growth trends.

When it comes to power management, the California-based company’s applications-focused product offerings are said to complement Analog Devices’ catalog of broad market products.

Analog Devices claims that the combination of the firms’ best-in-class technologies will improve its depth of domain expertise and engineering capabilities from DC to 100 gigahertz, nanowatts to kilowatts, and also sensor to cloud, with over 50,000 products. This will help the combined enterprise to offer more complete solutions to cater to over 125,000 customers, said Analog Devices.

Vincent Roche – President and CEO of Analog Devices said: “ADI and Maxim share a passion for solving our customers’ most complex problems, and with the increased breadth and depth of our combined technology and talent, we will be able to develop more complete, cutting-edge solutions.

“Maxim is a respected signal processing and power management franchise with a proven technology portfolio and impressive history of empowering design innovation. Together, we are well-positioned to deliver the next wave of semiconductor growth, while engineering a healthier, safer and more sustainable future for all.”

As per the deal terms, Maxim Integrated Products’ stockholders will be issued 0.630 of Analog Devices’ shares for each of their shares. Following the closing of the merger, current Analog Devices’ stockholders will own nearly 69% of the combined company, while Maxim Integrated Products’ stockholders will hold around 31%.

Tunç Doluca – President and CEO of Maxim Integrated Products said: “For over three decades, we have based Maxim on one simple premise – to continually innovate and develop high-performance semiconductor products that empower our customers to invent. I am excited for this next chapter as we continue to push the boundaries of what’s possible, together with ADI.

“Both companies have strong engineering and technology know-how and innovative cultures. Working together, we will create a stronger leader, delivering outstanding benefits to our customers, employees and shareholders.”

The deal, which has been approved unanimously by the boards of both the companies, values the combined enterprise at more than $68 billion. It is anticipated to be wrapped up in the summer of 2021 subject to the meeting of customary closing conditions, which includes regulatory approvals across the US and in other countries, apart from approval by shareholders of the two firms.