Analog Devices to Buy Rival Maxim in $21 Billion Deal

Analog Devices agreed to buy rival Maxim Integrated Products Inc. for $20.9 billion, signalling what may develop into a new round of consolidation in the $400 billion semiconductor industry. ADI announced recently that they have entered an definitive agreement under which ADI will acquire Maxim in an all stock transaction. It was in 2014 when ADI aquired Hittite who was a major player in the RF world. Not only this, ADI acquired Linear Technologies which put ADI in a position of dominance within the analog space. However, these acquisitions take months for finalisation which includes the regulatory approval and the process does not always end in successful acquisitions. 

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 percent of the combined company, while Maxim stockholders will own approximately 31 percent. The transaction is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes, according to EDI.

“Today’s exciting announcement with Maxim is the next step in ADI’s vision to bridge the physical and digital worlds. 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,” said Vincent Roche, President and CEO of ADI. “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.”


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