ADI will pay 0.630 of a share for every Maxim share in a deal that values the combined operation at $68 billion ADI shareholders will own 69 percent of the enterprise and Maxim shareholders 31 percent after the closing.
The deal has approved unanimously by the boards of directors of both companies and it is said will strengthen ADI and give it increased breadth and scale across multiple attractive end markets.
The companies argue that Maxim's strength in automotive and data centers complements ADI's broader capabilities in industrial, communications and healthcare. Upon closing, two Maxim directors will join ADI’s board, including Maxim's current CEO, Tunc Doluca.
"ADI and Maxim share a passion for solving our customers’ most complex problems, and with the increased breadth and depth of our combined technology and talent, we will be able to develop more complete, cutting-edge solutions," said Vincent Roche, CEO of ADI, in a statement.
The transaction is expected to close in the summer of 2021, subject to the satisfaction of customary closing conditions, including receipt of U.S. and certain non-U.S. regulatory approvals, and approval by stockholders of both companies.
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