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NEW YORK (AP) — Computer chip maker Analog Devices is buying Maxim Integrated in an all-stock deal that will create a company worth about $68 billion, and strengthens its position in the analog semiconductor sector.
The $20 billion acquisition would also give Analog a more defined roll in the development technology for 5G networks and self-piloted vehicles.
Maxim stockholders will receive 0.630 of a share of Analog common stock for each share of Maxim common stock they hold at the transaction's closing, according to the announcement Monday. Analog stockholders will own approximately 69% of the combined company, while Maxim stockholders will own about 31%.
Two Maxim directors will join Analog's board once the deal is complete, including Maxim President and CEO, Tunç Doluca.
The deal is expected to close next summer, but requires the approval of shareholders from both companies and regulators.
Maxim was hit hard by the economic slowdown brought on the pandemic and its shares had slid 30% between February and March. Those shares have been rising since then, however.
Analog Devices Inc., based in Norwood, Massachusetts, provides technology used in everything from healthcare to transportation.
Maxim Integrated Products, Inc., based in San Jose, California, makes chips for manufacturers, energy companies and in healthcare. Its shares jumped more than 15% before the opening bell Monday.
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