The deal specifically highlights power management, with Maxim’s applications-focused product offerings complementing ADI’s catalogue of broad market products. Maxim’s strength in the automotive and data centre markets boosts ADI’s strength across the broad industrial, communications and digital healthcare markets.
Maxim's $8.2bn puts the deal on a multiple of 2.5x revenue. with the combined company worth $68bn. This follows the acqusition of Linear Technology for $14.8bn in 2016, and compares to a valuation of $121bn for Texas Instruments, Analog's main competitor.
Maxim stockholders will receive 0.630 of a share of ADI common stock for each share of common stock they hold.
“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.
Upon closing, two Maxim directors will join ADI’s Board of Directors, including President and CEO, Tunç Doluca.