ADI to Acquire Maxim Integrated for $21 Billion in Major Semiconductor Deal

July 13, 2020 by Kate Smith

Analog Devices (ADI) has put down billions to buy out Maxim Integrated in a continuation of ADI's string of acquisitions.

In an announcement released this morning, Analog Devices announced their intention to acquire Maxim Integrated.

ADI, founded in Massachusetts in 1965, has earned a reputation as a juggernaut in the IC space with a particular focus on mixed-signal ICs and digital signal processing. 



A Continued Vision of Acquisitions

ADI, like many of its megacorporation peers, has exhibited a tendency toward acquisitions in the past. 

In recent years, ADI has made other notable moves such as in 2014, when ADI acquired Hittite, a major player in the RF world, to expand its product offerings in RF spectrum, microwave, and millimeter-wave technologies. Even more notable still was the 2016 acquisition of Linear Technologies, which put ADI in a position of dominance in the analog space, in addition to gaining ownership of the popular LTspice simulator software.

This newest acquisition of Maxim Integrated would join a series of large moves by major players in the last decade, including ON Semiconductor's acquisition of Fairchild in 2016, Microchip's acquisition of Atmel in 2016, and Texas Instruments' acquisition of National Semiconductor in 2011.


Maxim's Strengths

Maxim has long been a leader in the semiconductor space. In the release, ADI President and CEO Vincent Roche called Maxim "a respected signal processing and power management franchise."

Over the last few years, Maxim has served up precision sensors, security solutions, and power management products. In particular, ADI stands to gain Maxim's expertise in wearables, particularly those with an eye toward medical applications such as biometrics monitoring. Maxim's most recent optical sensor technology for health-monitoring smartwatches is a testament to its innovation in biometric wearables. 

 In 2018, Maxim actually released their own wearable, the MAX-HEALTH-BAND product, which was intended to provide biometric monitoring for improved preventative healthcare. 

While ADI has its own healthcare-focused pavilion of products, it will be interesting to see what the merger of the two companies' assets will yield. 


Awaiting Finalization

The acquisition is not yet complete. It will take months for finalization, including regulatory approval. This process does not always result in successful acquisitions. Recall that the proposed $44 billion Qualcomm-NXP merger, first announced in 2016, was ultimately nixed two years later. In that instance, Netherlands-based NXP was set to be acquired by US-based Qualcomm, but the deal was shut down by officiating bodies in China who cited an antitrust law.

When the companies in question are as large as Maxim and ADI (both US-based), regulatory issues become a prime topic of discussion. 

Stay tuned for updates on this acquisition.