Maxim Integrated Products notes that the deal will have Analog Devices acquiring it for $21 billion. This will have Analog Devices offering .63 shares of ADI stock for each share of MXIM stock that investors own.
That offer from Analog Devices values MXIM stock at roughly $78.44 per share based on the closing price of $124.50 per share for AI stock on Friday. It also represents a 22.4% premium over MXIM stock’s closing price of $64.09 on Friday.
Analog Devices notes that it expects the acquisition of Maxim Integrated Products to be accretive to its adjusted EPS 18 months after the deal closes. Also, the companies are expecting cost synergies of $275 million two years after the close.
When the deal closes, two members of Maxim Integrated Products’ Board of Directors will join the Board at Analog Devices. One of these will be MXIM president and CEO Tunç Doluca.
Vincent Roche, president and CEO of Analog Devices, said this about the deal.
“Maxim is a respected signal processing and power management franchise with a proven technology portfolio and impressive history of empowering design innovation. Together, we are well-positioned to deliver the next wave of semiconductor growth, while engineering a healthier, safer and more sustainable future for all.”
Maxim Integrated Products and Analog Devices are expecting the deal to close in summer 2021 once closing conditions have been met.
MXIM stock was up 10.7% and ADI stock was down 3.8% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.