Silicon Motion Shareholders Approved the Merging Proposal of MaxLinear

In May this year, MaxLinear announced that it had reached a final agreement with Silicon Motion. The acquisition will be made in a cash and stock transaction with a total value of approximately $3.8 billion and is expected to close within 18 months. In the transaction, each American Depositary Share (ADS) corresponding to four shares of Silicon Motion will receive $93.54 in cash and 0.388 shares of MaxLinear common stock, for a total consideration of $114.34 per ADS.

MaxLinear issued an announcement stating that Silicon Motion’s shareholders approved the merger proposal of MaxLinear at the extraordinary general meeting on August 31, 2022. According to the plan, Silicon Motion will become a wholly-owned subsidiary of MaxLinear. In addition, the deal is pending approval from regulators including the State Administration for Market Regulation (SAMR).

With RF, analog/mixed-signal, and processing capabilities, MaxLinear develops and sells chips for home and enterprise Ethernet, data center, broadband, home, and industrial applications. Silicon Motion has the technology of NAND flash memory controller and provides the main control chip for SSD and other storage devices. The two parties are highly complementary in business. The merger is expected to result in a complete technology stack and a highly diversified technology platform with a significant presence in broadband, connectivity, infrastructure, and storage end markets.

MaxLinear said that after the merger, the two parties will not only become larger in scale but also provide more technology, resources, and capabilities to accelerate product innovation, improve operational efficiency and reduce manufacturing costs, the transaction is expected to generate at least $100 million in annual operating synergies.