BY Richard Summerfield
Analog Devices Inc. (ADI) has agreed to acquire rival Maxim Integrated Products Inc. for $20.9bn in an all stock deal.
The deal values Maxim at $78.43 per share, a premium of about 22 percent to its closing price last Friday.
The transaction is expected to close in the summer of 2021, subject to the satisfaction of customary closing conditions, including receipt of US and certain non-US regulatory approvals, and approval by stockholders of both companies.
The newly combined company will have a market value of $68bn and form a larger rival to industry leader Texas Instruments. Maxim shareholders will own approximately 31 percent of the combined entity.
“Today’s exciting announcement with Maxim is the next step in ADI’s vision to bridge the physical and digital worlds,” said Vincent Roche, president and chief executive of ADI. “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,” he continued. “Together, we are well-positioned to deliver the next wave of semiconductor growth, while engineering a healthier, safer and more sustainable future for all.”
“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,” said Tunç Doluca, president and chief executive of Maxim. “I am excited for this next chapter as we continue to push the boundaries of what’s possible, together with ADI.”
He added: “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 is the largest technology merger announced in 2020 to date and follows a broader trend of consolidation in the semiconductor market. Previous deals in the space include Infineon Technology AG’s $9.4bn acquisition of Cypress Semiconductor Corp. in June 2019 and NXP Semiconductors NV’s $1.76bn acquisition of Marvell Technology Group Ltd.’s wireless connectivity business unit in May 2019.
News: Chipmaker Analog Devices to buy rival Maxim for about $21 billion