Strengthening Analog Semiconductor Leadership: Analog Devices Announces Acquisition of Maxim Integrated

By: SiliconExpert on July 30th, 2020

On July 13, 2020, Analog Devices, Inc and Maxim Integrated Products, Inc. announced a definitive agreement under which ADI will acquire Maxim for $ 20.9 billion US dollars.  With this all-stock transaction, the combined companies will be valued at over $ 68 billion US dollars.  Upon closing, current ADI stockholders will own approximately 69% of the combined company, while Maxim stockholders will own approximately 31% For U.S. federal income tax purposes, this merger does qualify as a tax-free reorganization, Subject to the satisfaction of customary closing conditions including receipt of U.S. and certain non-U.S. regulatory approvals and approval by stockholders of both companies, the acquisition is expected to close in the summer of 2021.

Acquisition Benefits:

•    Strengthens ADI as an analog semiconductor leader with increased breadth and scale across multiple end-user markets•    The combination of the two companies strengthens ADI’s analog semiconductor leadership position with expected revenue of $ 8.2 billion and free cash flow of $ 2.7 billion on a pro forma basiso    serving more than 125,000 customers this merger captures for ADI a larger share of a $ 60 billion total addressable market•    Enhanced Domain Expertise & Capabilities•    Shared Passion for Innovation-led Growth•    Earnings Accretion & Cost Savings•    Strong Financial Position & Cash Flow Generation•    Enhanced strength within the automotive, data center and the digital health field

Impacts To The Customer :•    Solving  customers’ most complex problems•    With the increased breadth and depth of combined technology and talent, ADI and Maxim will be able to develop more complete, cutting-edge solutions

For more details on this acquisition, please visit:•    https://investor.analog.com/news-releases/news-release-details/analog-devices-announces-combination-maxim-integrated•    https://www.bloomberg.com/news/videos/2020-07-13/analog-devices-ceo-on-buying-maxim-integrated-video

What is the impact on your business?Mergers and Acquisitions are inevitable but can have a serious impact on your supply chain.  ContactSiliconExpert at livechat@siliconexpert.com  to help you navigate the impact of this acquisition. For more information on Merger & Acquisition supply chain impacts, download our M&A Impacts Infographic.

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July 30, 2020, by Nader Yousef