Analog Devices to Buy Rival Maxim in $21 Billion Chip Deal

  • Deal valued at a 22% premium to Maxim’s closing shares Friday
  • New company creates a larger rival for Texas Instruments Inc.

Analog Devices Inc. in Massachusetts.

Photographer: JB Reed/Bloomberg

Lock
This article is for subscribers only.

Analog Devices Inc. agreed to acquire rival Maxim Integrated Products Inc. for $20.9 billion in stock, heralding what may develop into a new round of consolidation in the $400 billion semiconductor industry.

Analog Devices will pay 0.63 share for each Maxim share, representing a 22% premium to Maxim’s closing share price on Friday, the two companies said in a statement early Monday.Bloomberg Terminal Analog Devices shareholders will own about 69% of the combined company, which will be valued at about $68 billion including debt, the companies said.