ANALOG DEVICES STRENGTHENS ANALOG SEMICONDUCTOR LEADERSHIP VIA MAXIM ACQUISITION

KUALA LUMPUR, July 14 -- Analog Devices Inc (ADI) and Maxim Integrated Products Inc have entered into a definitive agreement, under which ADI will acquire Maxim in an all stock transaction that values the combined enterprise at over US$68 billion. (US$1 = RM4.268)

The transaction, which was unanimously approved by the Boards of Directors of both companies, will strengthen ADI as an analog semiconductor leader with increased breadth and scale across multiple attractive end markets.

Under terms of the agreement, Maxim stockholders will receive 0.63 of a share of ADI common stock for each share of Maxim common stock they hold at the closing of the transaction.

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According to a statement, upon closing, current ADI stockholders will own approximately 69 per cent of the combined company, while Maxim stockholders will own about 31 per cent.

The transaction is intended to qualify as a tax-free reorganisation for the United States (US) federal income tax purposes.

Upon closing, two Maxim directors will join ADI’s Board of Directors, including Maxim President and Chief Executive Officer, Tunç Doluca.

The transaction is expected to close in the summer of 2021, subject to the satisfaction of customary closing conditions, including receipt of US and certain non-US regulatory approvals, and approval by stockholders of both companies.

Morgan Stanley served as lead financial advisor to ADI. BofA Securities also served as financial advisor. Wachtell, Lipton, Rosen & Katz served as legal counsel.

J.P. Morgan served as exclusive financial advisor to Maxim, and Weil, Gotshal & Manges LLP served as legal counsel.

-- BERNAMA