Today Analog Devices has announced that it will be acquiring Maxim Integrated in a transaction estimated at $21bn. The combined company value is said to end up being valued at $68bn, creating a significant player in the analog IC market.
Analog Devices are most popularly known by their signal processing discrete ICs, such as amplifiers, ADCs and DACs, although their product portfolio extends to a very wide range of other designs.
Maxim Integrated is most popularly known by their power management ICs as well as sensors. For example, they have been the main the main battery PMIC (And until recent years, a lot of other phone-centric PMICs) provider for Samsung mobile devices for the better part of the last decade.
Although the two companies have some overlapping product segments which likely will see consolidation, the overall two business seem like they will be complementary to each other as they both specialize in different areas. Analog Devices in particular says that the transaction is meant to boost its market share in the automotive and data centre markets thanks to Maxim’s application specific products, while continuing to offer Analog Devices own broader market products.
In a market where we see a ton of consolidation and many vendors opting to vertically integrated their solutions, it becomes important to have a broader product portfolio in order to maintain leadership positions. The new consolidated Analog Devices and Maxim Integrated entity will have the breath to compete against big players such as Texas Instruments.