Maxim To Buy Dallas Semiconductor
Jan. 29, 2001
DALLAS (AP) _ Specialty circuit manufacturer Dallas Semiconductor Corp. is being acquired for about $2.5 billion in stock by Silicon Valley circuit maker Maxim Integrated Products Inc.
The deal announced Monday was expected to be completed during the second quarter, subject to approval by Dallas Semiconductor's stockholders and regulators.
Maxim plans to issue about $2.5 billion of stock for all of the outstanding shares and stock options of Dallas Semiconductor.
Under the deal, each share of Dallas Semiconductor's stock would be exchanged for 0.6163 shares of Maxim stock. Maxim is based in Sunnyvale, Calif.
Dallas Semiconductor shares climbed nearly 35 percent, or $9.44 a share, to close at $36.25 Monday on the New York Stock Exchange, while Maxim shares tumbled 5.4 percent, or $3.44 a share, to $60.06 on Nasdaq dealings.
Jack Gifford, Maxim chairman, president, and chief executive, said Dallas Semiconductor has many complementary product lines to Maxim's, and Maxim plans to boost Dallas Semiconductor's profile as a supplier of digital and mixed-signal circuits in both the domestic and the international markets.
``We share Maxim's strategic vision of the market and customer needs,'' said Chao C. Mai, Dallas Semiconductor co-founder, president and chief operating officer, in a prepared statement. ``We believe that Maxim's worldwide selling, applications, and marketing strengths should further enhance Dallas Semiconductor's revenue growth and gross margins.''
Dallas Semiconductor last year earned $95.4 million, up 40 percent from a year ago, on a 32 percent sales increase to $517 million.
Maxim earned $280.6 million, up 43 percent, on a 42 percent sales increase to $864.9 million in 2000.
On the Net:
Maxim site: http://www.maxim-ic.com