U.S bases multinational semiconductor Analog Devices Inc. (ADI) is set to acquire its fellow integrated circuit manufacturer Maxim Integrated Products Inc. (MXIM). Sources involved in this matter disclosed that talks of the same are in advanced stages thus anytime a deal might be stricken.
Analog devices is looking forward for the deal to help it expand its portfolios in areas such as 5G telecommunications networks and self-driving vehicles. Considering the two companies engage in manufacturing integrated circuits, this deal will also increase revenue and cost streams.
Maxim is largely involved in production of analog chips used in health care, connected devices, energy, communications, manufacturing and cars.
Currently Maxim enjoys a market capitalization of $17.1 billion, since March stock of the company has gained over 50% due to an increased demand of semiconductors caused by schooling at home and working at home directives.
Word has it that negotiations are underway for Maxim’s shareholders to be paid in Analog Devices shares rather than cash payment. This will grant the shareholders with an opportunity to own shared in the merged company.
This news was first published on Wall Street Journal, according to WSJ this deal could possibly be closed in one week’s time.