Analog Devices buying Maxim Integrated in all-stock deal

Andrew Cummings
July 13, 2020

Under the terms of the agreement, which values the combined entity at more than $68bn, Maxim shareholders will receive 0.630 of a share of ADI common stock for each share of their shares.

Founded in 1983, Maxim designs, manufactures and sells high-performance analog, linear and mixed-signal semiconductors that are used in the industrial, automotive communications, health care and consumer markets.

Whereas many acquisitions and mergers have been delayed or scrapped totally resulting from COVID-19 this 12 months, the semiconductor enviornment historically has been a hotspot for buyouts. That's a long way short of the 22% increase that Analog's offer implies the shares are worth, which might reflect the widespread concern that regulators will block the deal.


The chip sector has been a reliable source of deals for years. The U.S.is dwelling to the biggest chunk of the world's producers of the electronic components.

"Analog Devices' diverse market reach could help it hold up during a sharp, short-term pandemic-related disruption to demand and supply chains", Bloomberg Intelligence senior analyst Woo Jin Ho wrote in a Monday note.

Reuters reported on Sunday evening that Analog Devices is at an advanced stage of negotiating the acquisition of the Maxim, given the General thrust of the two companies on the integrated circuit. She will be able to compete with larger competitors, including Texas Instruments.


All three companies focus in analog and embedded computing factors. Once a sleepy backwater of the industry, this segment has enjoyed a resurgence as the list of uses and customers has grown in the past few years.

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It's also a very profitable area of the chip industry.


Considering that 2015, the Philadelphia Stock Exchange Semiconductor Index has tripled in benefit. The benchmark index now has a market capitalization of more than $1.5 trillion. Above that very same interval, chip organizations have been significantly consolidating to aid them reduce expenses and provide prospects that have performed the exact. Visit MarketWatch.com for more information on this news.

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