US semiconductor manufacturer Analog Devices announced plans to acquire rival Maxim Integrated Products in an all-stock transaction for a reported $20.9 billion, in a bid to boost capabilities in a variety of sectors including telecommunications.
In a statement, Analog Devices highlighted Maxim’s “strength in the automotive and data centre” sectors, which when combined with its portfolio in “industrial, communications and digital healthcare markets” would align “with key secular growth trends.”
The acquisition was unanimously approved by the boards of both companies, with the combined company predicted to be worth $68 billion.
Vincent Roche, president and CEO of Analog Devices, said adding Maxim’s capabilities will enable the company to “develop more complete, cutting-edge solutions”.
Maxim president and CEO Tunc Doluca added the combination would deliver a company with “strong engineering and technology know-how and innovative cultures”, which will deliver “outstanding benefits to our customers, employees and shareholders.”
Doluca is one of two Maxim directors who will join Analog Devices’ board.
The deal is expected to close in mid-2021, subject to “receipt of US and certain non-US regulatory approvals” and shareholder backing.Subscribe to our daily newsletter Back