Analog Devices Inc., Norwood, Mass., and Maxim Integrated Products Inc., San Jose, Calif., announce that they have entered into a definitive agreement under which ADI will acquire Maxim in an all-stock transaction that values the combined enterprise at over $68 billion.
The acquisition 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 basis. Maxim’s strength in the automotive and data center markets, combined with ADI’s strength across the broad industrial, communications, and digital healthcare markets are highly complementary and aligned with key growth trends. With respect to power management, Maxim’s applications-focused product offerings complement ADI’s catalog of broad market products.
Combining best-in-class technologies will enhance ADI’s depth of domain expertise and engineering capabilities, from DC to 100 gigahertz, nanowatts to kilowatts, and sensor to cloud, with more than 50,000 products. This will enable the combined company to offer more complete solutions, serve more than 125,000 customers, and capture a larger share of a $60 billion total addressable market.
The two companies have similar cultures focused on talent, innovation, and engineering excellence with more than 10,000 engineers and approximately $1.5 billion in annual research and development investment.
www.analog.com
