Today Analog Devices has introduced that will probably be buying Maxim Integrated in a transaction estimated at $21bn. The mixed firm worth is alleged to finish up being valued at $68bn, creating a major participant within the analog IC market.
Analog Devices are greatest identified for his or her sign processing discrete ICs, equivalent to amplifiers, ADCs and DACs, though their product portfolio extends to a really wide selection of different designs.
Meanwhile Maxim Integrated is generally identified by their energy administration ICs in addition to sensors. For instance, they’ve been the principle battery energy administration IC (PMIC) supplier for Samsung cell units for the higher a part of the final decade (And till current years, a number of different phone-centric PMICs as properly).
Although the 2 firms have some overlapping product segments which seemingly will see consolidation, the general two enterprise seem to be they are going to be complementary to one another as they each specialise in completely different areas. Analog Devices specifically says that the transaction is supposed to spice up its market share within the automotive and information centre markets because of Maxim’s utility particular merchandise, whereas persevering with to supply Analog Devices personal broader market merchandise.
In a market the place we see a ton of consolidation and plenty of distributors opting to vertically combine their options, it turns into essential to have a broader product portfolio as a way to keep management positions. The new consolidated Analog Devices and Maxim Integrated entity could have the breadth to compete towards large gamers equivalent to Texas Instruments.
