:Analog Devices Inc expects its takeover of Maxim Integrated Products to add to adjusted earnings six months ahead of its initial timeline, the U.S. semiconductor maker said on Wednesday.
Analog, which supplies sensors, data converters and signal processing products, expects the earnings boost twelve months after the deal closes. It also expects the deal to be neutral to adjusted earnings in fiscal 2022.
The accelerated timing was due to stronger business fundamentals, share repurchases and the realization of more than 40per cent of cost savings, the company said.
Analog on Tuesday announced a US$2.5 billion accelerated share buyback program to be completed by the second quarter of 2022, bringing total repurchases to about US$5 billion by the end of 2022.
The deal with Maxim, Analog's biggest, will boost its market share in automotive and 5G chipmaking and enable it to better compete with larger firms including Texas Instruments.
San Jose, California-based Maxim designs and manufactures analog chips used in cars and connected devices.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shailesh Kuber)