Maxim Integrated Products and Dallas Semiconductor Corporation have announced an agreement under which Maxim will acquire Dallas Semiconductor, a leading provider of speciality semiconductors, for approximately US$2.5 billion in stock.
Based on Maxim’s closing price on Friday, January 26, 2001, each outstanding share of Dallas Semiconductor would be exchanged for 0.6163 of a share of Maxim, and Maxim would issue around $2.5 billion of stock for all of the outstanding shares and stock options of Dallas Semiconductor.
The acquisition is anticipated to be completed during the second quarter of 2001 and is subject to approval by Dallas Semiconductor’s stockholders and compliance with applicable regulatory requirements.
According to a statement from Dallas Semiconductor, the transaction is intended to be accounted for as a pooling-of-interests and to qualify as a tax-free re-organisation. Because of this, Maxim will be rescinding its existing common stock repurchase program prior to consummation of the transaction.
‘Dallas Semiconductor has many product lines that are complementary to Maxim’s, and we look forward to giving more visibility to Dallas Semiconductor’s excellent digital and mixed-signal circuits in both the domestic and the international marketplaces,’ said Jack Gifford, Chairman, President, and Chief Executive Officer of Maxim. ‘ Dallas Semiconductor has an extremely talented group of professionals, and there is no plan for a workforce reduction.’
Dr Chao C Mai, President and Chief Operating Officer of Dallas Semiconductor, commented: ‘We are excited about this transaction. After careful deliberation, emphasising leadership, engineering, culture, and product line fit, we chose Maxim as the right partner. We share Maxim’s strategic vision of the market and customer needs. We believe that Maxim’s world-wide selling, applications, and marketing strengths should further enhance Dallas Semiconductor’s revenue growth and gross margins.’