A $21 Billion Chip Deal Messes With Texas Instruments
The merger between Analog Devices and Maxim Integrated Products will create a stronger rival in a less sexy but still vital part of the chip market.
The combination of Analog Devices and Maxim Integrated Products will create a larger No. 2 player in analog chips.
Photographer: Brent Lewin/BloombergThe boring part of the chip market is getting more interesting. For Texas Instruments Inc., that means stiffer competition from a stronger rival.
Early Monday, Analog Devices Inc. announced a definitive agreement to acquire Maxim Integrated Products Inc. for about $21 billion in an all-stock deal that works out to a 22% premium to Maxim’s close on Friday. Maxim shareholders will get 0.63 share of Analog stock for each share they own, resulting in 31% ownership of the combined company. The transaction is expected to be completed in the summer of 2021 and is subject to regulatory and shareholder approvals.