Analog Devices to acquire rival chipmaker Maxim Integrated for $ 21 billion – TechCrunch
Analog Devices wasted no time in getting the week off to a good start by announcing this morning the acquisition of rival chipmaker Maxim Integrated Products for $ 20.91 billion (according to several reports). The company had a market capitalization of $ 17.09 billion at Friday’s close.
The deal, which has already been approved by the boards of the two companies, would create a chipmaking giant worth $ 68 billion, according to Analog. The idea behind the deal is that the bigger the better, and the combined companies will increase Analog’s revenue by $ 8.2 billion.
In addition, the two companies should combine well in that there is not much overlap in their activities. Maxim’s strength is in the automotive and data center areas, while Analog is more focused in industry and healthcare.
Vincent Roche, President and CEO of ADI, was excited about the potential of the combined organizations. “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 talents, we will be able to develop more comprehensive and cutting-edge solutions. “he said in a statement. .
Maxim was founded in 1983 and went public in 1988. It made nine acquisitions between 2002 and 2013, the most recent being Voltera in 2013, according to data from Crunchbase.
As with all such deals, it must first be approved by regulators, but companies expect the deal to be concluded by next summer.