Analog Devices in Talks to Buy Maxim in About $17b Deal: DJ

Semiconductor maker Analog Devices Inc. is in discussions to acquire Maxim Integrated Products Inc. for more than $17 billion in what would be one of the largest deals of the year, Dow Jones reported, citing people familiar.

The deal would be Analog’s largest acquisition ever, dwarfing its $12.8 billion purchase of Linear Technology four years ago.

The all-stock transaction may be announced as soon as Monday, according to the report. The companies are talking about deal that values San Jose, California-based Maxim at more than its current market capitalization of $17.1 billion. Norwood, Mass.-based Analog has a market value of $46 billion.

Shares of both companies have rallied about 50% from their pandemic-driven troughs in March.

The semiconductor industry has been a hot sector in recent years. Chipmakers are trying to add scale and expand their product lines as more items connect to the internet.

A deal isn’t finalized and talks could fall apart. Analog has tried to buy Maxim before, on its own in 2015 and later in tandem with Texas Instruments, according to Bloomberg data.

©2020 Bloomberg L.P.

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