Analog Devices to Buy Rival Maxim in $21 Billion Chip Deal (2)

Analog Devices Inc. agreed to acquire rival Maxim Integrated Products Inc. for $20.9 billion in stock, heralding what may develop into a new round of consolidation in the $400 billion semiconductor industry.

Analog Devices will pay 0.63 share for each Maxim share, representing a 22% premium to Maxim’s closing share price on Friday, the two companies said in a statement early Monday. Analog Devices shareholders will own about 69% of the combined company, which will be valued at about $68 billion including debt, the companies said.

The acquisition of San Jose, California-based Maxim creates a larger rival for Texas Instruments ...