The deal, which is also Analog’s biggest, will create a chipmaking giant with a combined enterprise value of about $68 billion that will compete with larger rivals including Texas Instruments.
The companies said the deal added Maxim’s strength in automotive and data center markets to ADI’s across broad industrial, communications and digital healthcare segments.
Based in Norwood, Massachusetts, Analog Devices provides sensors, data converters, amplifiers and other signal processing products to a range of industries from transportation and healthcare to instrumentation and portable consumer devices.
San Jose, California-based Maxim designs and manufactures analog chips that are used in cars, manufacturing, energy, communications, healthcare and connected devices.
The deal is expected to add to adjusted earnings of the combined entity in about 18 months following the close, with $275 million in cost savings by the end of year two, they said.
Two Maxim directors, including Chief Executive Officer Tunç Doluca, will join Analog Devices’ board.
Among its biggest deals, Analog acquired fellow chipmaker Linear Technology for about $14.8 billion in 2016.