US chipmaker Analog Devices (US:ADI) has struck a deal to purchase rival Maxim Integrated Products (US:MXIM) for more than $20bn (£16bn). Maxim shareholders will receive 0.63 Analog shares for each of their shares and own 31 per cent of the enlarged group.
Analog and Maxim specialise in analogue semiconductors – these chips convert ‘real world’ inputs such as temperature into electronic signals. As we move ever closer to the ‘internet of things’, demand for such semiconductors should increase.
This tie-up would bring together the number two and three industry players with a combined market capitalisation of around $68bn – although they would likely still be some way off from challenging analogue chip leader, Texas Instruments (US:TXN). The takeover would allow Analog to expand its footprint in the automotive market.