Jul 13, 2020 - Economy & Business
Chip companies strike $21 billion megamerger
- Dan Primack, author of Axios Pro Rata
Illustration: Rebecca Zisser / Axios
Analog Devices agreed to buy Maxim Integrated Products in an all-stock deal valued at $20.9 billion.
Why it matters: This would be the year's largest tech merger so far. Analog will pay the equivalent of $78.43 per Maxim share, which represents a 22% premium to Friday's closing price. Following the deal, Analog shareholders would hold around 69% of the combined company.
The bottom line: "Analog Devices is currently less than half the size of market leader Texas Instruments by revenue. While Maxim wouldn’t allow it to close the gap totally, it would broaden the range of products in the analog portfolio, something that Texas Instruments has touted as helping to cement its dominance," writes Bloomberg.