Analog Devices has undoubtedly started the week on shields, announcing a maxi operation: in fact, the company has announced that it has reached an agreement for the acquisition of rival chipmaker Maxim Integrated Products. Although the terms of the transaction have not been officially announced, several rumors agree with the allocation of the monster figure of $20.91 billion to the transaction. Maxim Integrated Products had a market capitalisation of $17.09 billion at the close of Friday, July 10.
The agreement, which has already been approved by the boards of both companies, would create a chip production mark worth $68 billion, as the Analog Devices suggests.
The idea behind the transaction is that a player of much higher size would bring a number of advantages and economies of scale. Analog Devices points out that turnover would increase by 8.2 billion dollars annually.
Moreover, the two companies would integrate perfectly: although they are active in the same market, overlaps are reduced to a minimum and redundancy would be irrelevant. In fact, Maxim Integrated Products focuses mainly well on automotive and data center segments, while Analog Devices is more focused on the industrial and health sectors.
Vincent Roche, president and CEO of Analog Devices, has not hidden his enthusiasm for the potential operation. The manager said that the two companies share the passion to solve the most complex problems of customers. Thanks to the experience and depth of the combined technologies of Analog Devices and Maxim Integrated Products, more comprehensive and cutting-edge solutions will be developed.
As with all operations of this type, it will have to pass the screening of the competent authorities, but the companies expect the deal to close by the next summer.