Analog Devices is buying Maxim Integrated in an all-stock deal that values the combined business at more than $68 billion...
Analog Devices, Inc. (ADI) and Maxim Integrated Products, Inc. announced that they have entered into a definitive agreement under which ADI will acquire Maxim for $20.9 billion in an all stock transaction that values the combined enterprise at over $68 billion.
The transaction will strengthen ADI as an analog semiconductor leader with increased breadth and scale across multiple attractive end markets. The market segments that Maxim caters to and has been emphasizing include assisted driving (ADAS), factory automation, and wearables.
Under the terms of the agreement, Maxim stockholders will receive 0.630 of a share of ADI common stock for each share of Maxim common stock they hold at the closing of the transaction. Upon closing, current ADI stockholders will own approximately 69% of the combined company, while Maxim stockholders will own approximately 31%.
According to an earlier report from EE Times, Maxim has been considered a takeover target for years. In 2016, ADI bought Linear Technology, which like both ADI and Maxim was focused on the analog IC market, for $14.8 billion (that deal closed in 2017). ADI’s purchase of Linear spurred speculation that yet another analog specialist, Texas Instruments, might buy Maxim as a counter-maneuver. That never happened, obviously, but Maxim has been considered a possible takeover target ever since.
Upon closing, two Maxim directors will join ADI’s Board of Directors, including Maxim President and CEO, Tunç Doluca.
The transaction is expected to close in the summer of 2021.