Send me real-time posts from this site at my email
Zacks

Analog Devices-Maxim Merger Receives Shareholder Approval

Analog Devices, Inc. ADI and Maxim MXIM have received approval from their shareholders for the proposed merger of both the companies.

The transaction is expected to be completed in the summer of 2021, subject to other customary closing conditions, including receipt of certain non-U.S. regulatory approvals.

In July, Analog Devices entered into a deal to acquire Maxim in an all-stock transaction that values the combined enterprise at more than $68 billion.

Maxim, which is an original equipment manufacturer of semiconductor analog and mixed signal integrated circuits, will complement and expand Analog Devices’ chip portfolio if the deal materializes.

We believe the Maxim acquisition will aid Analog Devices to create tremendous value for customers in the days ahead. This, in turn, will continue to drive its momentum across shareholders.

Analog Devices Stands to Gain

The deal is expected drive Analog Devices’ growth across several emerging growth markets.

Moreover, the deal will expand the company’s total addressable, allowing it to cater to staggering demand in some of the promising markets including industrial, automotive and telcommunications.

Analog Devices is likely to gain strong traction across autonomous driving, 5G network and several other applications on the back of Maxim’s robust chip offerings that are usable in communications, healthcare cars, manufacturing, energy, as well as connected devices.

Further, the underlined acquisition is anticipated to be accretive to the company’s revenues in the upcoming quarters.

Bottom Line

The latest move of Analog Devices is in sync with its strong efforts to bolster presence in the semiconductor industry, which is the backbone of several other industries and sectors.

According to the Semiconductor Industry Association data, worldwide semiconductor sales are anticipated to grow 3.3% in 2020 and 6.2% in 2021 amid the coronavirus pandemic.

We believe the company’s acquisition strategy and strong focus on development of new technology in order to strengthen the portfolio of sensors, data converters, amplifiers and other signal processing products will continue to shape its growth trajectory and sustain momentum in the semiconductor industry.

Zacks Rank & Stocks to Consider

At present, Analog Devices has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Dropbox DBX, and Intuit Inc. INTU, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate of Dropbox and Intuit is pegged at 34.4% and 12.3%, respectively.

Zacks’ 2020 Election Stock Report

In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.

Check out the 2020 Election Stock Report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Intuit Inc. (INTU): Free Stock Analysis Report
 
Maxim Integrated Products, Inc. (MXIM): Free Stock Analysis Report
 
Analog Devices, Inc. (ADI): Free Stock Analysis Report
 
Dropbox, Inc. (DBX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue