Analog Devices He wasted no time kicking off the week with a bang when he announced this morning that he was acquiring rival chipmaker Maxim Integrated Products for $ 20.91 billion (according to multiple reports). The company had a market capitalization of $ 17.09 billion at the close on Friday.
The deal, which has already been approved by the boards of directors of both companies, would create a chip giant worth $ 68 billion, according to the analog. The idea behind the transaction is that bigger is better and the combined companies will increase Analog's revenue by $ 8.2 billion.
Furthermore, the two companies should combine well as there are not many overlaps in their activities. Maxim's strength lies in the automotive and data center spaces, while Analog is more concentrated in the industrial and healthcare sectors.
Vincent Roche, ADI President and CEO, was thrilled with the potential of the combined organizations. "ADI and Maxim share the passion for solving the most complex problems of our customers and with the greater breadth and depth of our combined technology and talent, we will be able to develop more complete and cutting-edge solutions," he said in a note .
Maxim was founded in 1983 and went public in 1988. It made 9 acquisitions between 2002 and 2013, the latest of which is Voltera in 2013, according to Crunchbase data.
As with all offers of this type, it is necessary to first approve the regulator, but companies expect that the contract will end by next summer.
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