ADI Will Acquire Maxim for $17 Billion
According to a report on the evening of the Wall Street Journal on the 12th, people familiar with the matter revealed that semiconductor manufacturer ADI is negotiating with competitors and is expected to acquire its peer Maxim for more than $17 billion. This transaction will be the largest merger this year.It is understood that the transaction will be carried out in the form of all stocks and is expected to be completed as soon as possible on Monday, but there is also the possibility of talk collapse.
Founded in 1983, Maxim is a leading global semiconductor design and manufacturing company, mainly providing advanced analog integration solutions for automotive, cloud data centers, mobile consumer, and industrial applications. Industrial products cover power management, sensors, analog signals, interfaces, communications, digital circuits, embedded security systems, and security microcontrollers.
Founded in 1965, ADI is a world-leading enterprise in the design, manufacture, and marketing of high-performance analog, mixed-signal, and digital signal processing (DSP) integrated circuits (ICs). Its products involve almost all types of electronic and electrical equipment.
As for the news of ADI's acquisition of Maxim, as early as 2015, there were rumors. At that time, Bloomberg reported that TI and ADI both intended to acquire Maxim. After their exchanges, they failed to reach an agreement because of price issues. Subsequently, ADI acquired Linear backhand. After the merger, revenue has increased to a certain extent, but the gap from the top TI is still not small.
In the article "Ranking of the Top Ten Analog IC Vendors" published by Mantianxin earlier, TI continued to hold the first place with US$ 10.2 billion in sales and 19% market share, and the output value of analog IC was almost the second place ADI 51.6 100 million US dollars.
Among them, Maxim ranked seventh with a revenue of 1.85 billion US dollars, down 13% from 2018, and is one of the top ten manufacturers in the top ten.
At present, the market value of ADI is about 46 billion US dollars, the analog IC market has a market share of about 10%, Maxim has a market share of 4%, and TI has a market share of 19%. If the acquisition is completed, the combined market share of the two will reach 14%, which is one NXP away from TI. Although it is temporarily unable to catch up with TI, it is still closer.