Report: Analog Devices, Maxim in merger talks

The share prices of both Analog Devices and Maxim Integrated Products spiked late on Wednesday Oct. 14 after reports that the two companies are in talks about a potential merger.

MADISON, Wis, Oct. 15, 2015 – 

The potential deal is the latest in a wave of consolidation taking place across the semiconductor industry.

Maxim Integrated Products Inc. (San Jose, Calif.), an analog and mixed-signal chip company, was conducting a strategic review of its business with a bank when it was approached by Analog Devices, according to a Bloomberg report that referenced an unnamed source. The talks are not finished but may not lead to a merger or acquisition the report said.

Analog Devices Inc. (Norwood, Mass.), a leading supplier of analog and mixed-signal ICs for signal conversion and amplification and RF applications. It has been on the acquisition trail for some time with a number of smaller deals and a major one taking the company higher into RF when it acquired Hittite Microwave Corp. in 2014. 

Maxim's share price jumped from $35.5 to $39 as the news broke and has remained at about $38.5 per share giving a market capitalization of about $10.9 billion. Analog Devices' share price jumped from $58 to $64 on the news but has settled back to about $61 making the company worth about $19.1 billion.

Spokespeople for Analog Devices and Maxim both said their respective companies do not comment on rumors and speculation.