ADI Begins M&A with Maxim... Completion Next Summer
Joint venture value, including debt, approximately $68 billion


The second and seventh-ranked companies in the analog semiconductor industry have merged.

Analog Devices (ADI) announced on the 14th that it is acquiring and merging with Maxim Integrated.

Under this transaction, which was unanimously approved by the boards of directors of both companies, Maxim shareholders will receive 0.630 shares of ADI common stock for every 1 share of Maxim common stock they hold at closing. In other words, ADI shareholders will hold approximately 69% of the merged company's stock, while Maxim shareholders will hold approximately 31%.

This transaction is scheduled to close next summer once customary transaction conditions are met, including the filing of regulatory approvals in the U.S. and certain non-U.S. regions, and approval by both companies' shareholders.

The Wall Street Journal reported on the merger, describing it as the largest merger in the U.S. this year. The value of the merged company, including debt, is approximately $68 billion. ADI's current market capitalization is approximately $48 billion, and Maxim's is approximately $17 billion.

Regarding this merger and acquisition, ADI stated, “The combination of ADI, which has strengths in the industrial, telecommunications, and healthcare sectors, and Maxim, which has strengths in the automotive and data center sectors, is highly complementary.”

According to IC Insights, the analog semiconductor industry recorded total revenue of $56.2 billion in 2019, with ADI and Maxim ranking second and seventh, respectively. The industry leader is Texas Instruments (TI) of the U.S., and third is Infineon of Germany.

ADI acquired Linear Technology in 2016.