Analog Devices in Talks to Acquire Maxim

By Tara Seals October 16, 2015

Analog Devices is reportedly in talks to acquire its West Coast semiconductor rival, Maxim Integrated Products.

According to Bloomberg, Maxim was working with a bank on a strategic review when it was approached by Analog Devices, according to unnamed sources. Maxim has been looking to reduce costs, transform its manufacturing footprint, and optimize R&D and sales to identify growth opportunities. It has a market value of about $9.8 billion.

Analog Devices meanwhile supplies the supplies the touchscreen controller that powers Apple's Force Touch in the Apple Watch, and is rumored to supply iPhones and iPads as well. Analog Devices has 2,500 employees in New England and 9,000 worldwide. Maxim has 8,800 employees in San Jose, Calif. Neither company has commented on the merger talks.

Analysts were mixed on the news.

"This would be a combination of two franchises with almost completely complementary product portfolios, and could be a company with scale to compete more effectively with the other big boy in our space, Texas Instruments, among others," said analysts Ambrish Srivastava and Gabriel Ho of BMO Capital Markets, in a research note.

The Motley Fool had a different take: “While I'm sure together Analog Devices and Maxim could identify compelling synergies and offer customers more comprehensive product solutions, there's no guarantee a merger of this size will come to fruition. Combining that with the uncertainty that Analog Devices' chips are in a certain new iDevice, as well as the fact Maxim has found top-line growth elusive of late, I think investors in both companies would be wise to consider taking at least some of today's quick gains off the table.”

If it happens, this will be the latest in a string of acquisitions in the component space. Intel Corp agreed in June to buy Altera Corp for $16.7 billion, and Avago Technologies said in May that it would buy Broadcom for $37 billion.




Edited by Stefania Viscusi

Contributing Writer

SHARE THIS ARTICLE
Related Articles

Four Reasons to Reach for the Cloud after World Earth Day

By: Special Guest    4/23/2018

The World Earth Day agenda offers a chance to flip the rationale for cloud adoption and highlight environmental benefits that the technology brings pr…

Read More

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More