Analog Devices in Talks to Acquire Maxim

By

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

Supply Chain Crisis Intensifies as Nobelium Activity Returns

By: Luke Bellos    10/25/2021

Microsoft issues urgent public warning that Russian hacking group Nobelium is attempting to exploit the current supply chain crisis.

Read More

Important Business Tips: The Benefits of Cloud Storage

By: Contributing Writer    10/25/2021

Cloud storage refers to the hosting of applications and data on the cloud instead of the physical hardware of a computer. It is a great way to cut dow…

Read More

VR and Biometrics in Banks

By: Contributing Writer    10/19/2021

During the pandemic, many banks again took up immersive technologies - some train employees on 360° video, and some sell mortgage apartments through V…

Read More

Digital Identity: An Introduction to the New Normal

By: Contributing Writer    10/19/2021

The evolution and our understanding of digital identity has led to an increased implementation of this structure. Here is a breakdown of digital ident…

Read More

5 Practical Data Loss Prevention Tips for Small Businesses

By: Contributing Writer    10/15/2021

Data is an invaluable asset for any organization. If you mismanage or lose data, you could experience hefty financial losses, lawsuits, ruined cust…

Read More