Maxim to buy integrated-power-silicon supplier Volterra

August 16, 2013 // By Graham Prophet
Maxim Integrated Products has announced it has agreed to acquire Volterra Semiconductor. Volterra is a maker of high-current, high-performance, and high-density power management silicon. The company develops highly integrated solutions primarily for the enterprise, cloud computing, communications, and networking markets.

"Maxim Integrated is known for its highly integrated solutions. With Volterra, we will strengthen our position in the enterprise and communications markets," said Tunç Doluca, Maxim's President and Chief Executive Officer. "We add a very talented team and leading-edge proprietary technology in high-current power management solutions, which further diversifies our business model."

"This is an attractive transaction for our employees, customers, and investors," said Jeffrey Staszak, Volterra's President and Chief Executive Officer. "The Volterra team will build upon Maxim's scale and market leadership to expand our ability to deliver innovative and differentiated products to our customers."

At $9 billion, power management is currently the largest and fastest-growing product segment in the analogue market, according to analyst Databeans. Maxim already offers a broad portfolio of products for power conversion: switching regulators, linear regulators, charge pumps, digital Point-of-Load (POL) converters, and Power Management Integrated Circuits (PMICs), primarily in medium-to-low current applications. Volterra's high-current technology expands the company's position in this [higher power] growing segment of the analogue market.

Maxim paid $605 million for Volterra ($23 per share, 55% over Volterra Semiconductor's closing share price on August 14, 2013), but gets $155 million cash that Volterra held, meaning the deal is worth a net $450 million.