According to the latest report from Bloomberg, ADI is negotiating to acquire Maxim Integrated.
The report said that the transaction price of the acquisition may exceed US$17 billion, and it may become one of the largest M&A transactions this year.
According to data from IC Insights, through the acquisition of Linear, ADI’s analog IC sales in 2017 increased by 14% to US$4.34 billion. At the same time, its ranking rose from 4th to 2nd, second only to Texas Instruments.
According to industry insiders, the most important reason for ADI's acquisition of Maxim is to strengthen its power management chip business. According to ADI's previous financial report, its power management chip revenue is only 150 to 200 million US dollars, and most of the revenue comes from the data conversion chip business.
In contrast, ADI's competitor Texas Instruments is the leader in the field of power management chips. TI provides more than 25,000 power management products and has entered the field of wireless charging very early. In recent years, the demand for TWS earbuds has risen sharply, and TI's power management chips have also benefited a lot.
According to the latest data, Maxim's market value is US$17 billion, ADI is US$45.869 billion, and TI's market value is US$119.997 billion. If the acquisition is successful, ADI will close its gap with TI.
However, the report said that the negotiations have not been completed and could still fall apart.
