Maxim Integrated

Maxim Integrated is the American producer of the analog and mixed integrated circuits which are used in cars, medical, production, utilities and telecommunication equipment.

History

2020: Analog Devices purchased Maxim Integrated for $21 billion

On July 13, 2020 the semiconductor producer Analog Devices  announced acquisition of Maxim Integrated for $21 billion. Thanks to this transaction which became to the largest in the USA since the beginning of year, the buyer will be able to strengthen positions in the market of chips for cars and a 5G equipment.

The stocks Maxim within the agreement are estimated at $78.43 for paper that represents an award about 22% to the price of the moment of closing of biddings in July 10, 2020. The quotations of Maxim rose in price for 17% up to $75 after the declaration of the transaction. Papers of Analog Devices added about 1% of cost. According to terms of transaction, shareholders of Maxim will receive 0.630 shares of Analog Devices for each paper belonging to them.

In the market of chips it is announced merge for $21 billion

Both companies specialize in creation of analog electronic components. After merge capitalization of the united company will make $68 billion that will allow it to compete with the market leader of analog chips of Texas Instruments.

 According to  IC Insights analytical company, in 2019 Texas Instruments earned $10.2 billion from these products that corresponds to a market share in 19%.

It is supposed that merge of Analog Devices and Maxim will add the profit of the united company 18 months later after closing and also will allow to save $275 million by the end of the second year. The CEO of Maxim of Tunc Doluca and one more top manager of the company will join Board of Directors of Maxim.

For Analog Devices this largest acquisition in the history. The former record is dated 2016 when the competing chipmaker Linear Technology for $14.8 billion^[1] was absorbed]

Notes