Analog Devices, Inc. (NASDAQ: ADI) and Maxim Integrated Products, Inc. (NASDAQ: MXIM) reported entry into a definitive agreement where ADI will acquire Maxim for a lump sum of USD 68 Billion in cash. The transaction was approved by the Board of Directors of both companies unanimously as Maxim will strengthen ADI as an analog semiconductor with increased breadth and scale on multiple end markets. Maxim shareholders will receive 0.630 share of ADI common stock in exchange for each share of Maxim common stock they hold at the close of the transaction. Current ADI stockholdings, upon closing of the deal will own 69% of the combined company as Maxim stockholders will hold 31%.
“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.”
“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,” said Tunç Doluca, President and CEO of Maxim Integrated.
The transaction is expected to close by Summer 2021 contingent upon the deal reaching customary closing decisions.