Analog Devices Details Updated Capital Allocation Priorities & Accelerated Accretion Timeline for Maxim Acquisition
08 Setembro 2021 - 5:00PM
Business Wire
Analog Devices, Inc. (NASDAQ: ADI), a leading global
high-performance semiconductor company, today detailed its updated
capital allocation priorities and accelerated the accretion
timeline following the completion of its acquisition of Maxim
Integrated on August 26, 2021.
“ADI has demonstrated a track record of operational excellence,
strong cash flow generation and disciplined capital investments,
including our recent acquisition of Maxim Integrated, that provides
the foundation for an attractive capital allocation framework,”
said Vincent Roche, President and CEO. “Our financial strength
positions us to substantially invest in our business, while
returning 100% of free cash flow to shareholders through dividends
and share repurchases. The decision to approve our accelerated
share repurchase program and increase our total share repurchase
authorization reflects our confidence in our future business
performance and commitment to provide meaningful return to
shareholders.”
Updated Capital Allocation Priorities
The company detailed the following capital allocation priorities
in alignment with its commitment to return 100% of free cash flow
to shareholders through dividends and share repurchases on an
investor webcast today:
- Authorized a $2.5 billion accelerated share repurchase (ASR)
program to be completed by the second quarter of 2022. After
completion of this program, ADI expects to have a net leverage
ratio of ~1x;
- Plan to repurchase an additional $2.5 billion bringing total
repurchases to approximately $5 billion by the end of calendar
2022, or around half of ADI’s current share repurchase
authorization of about $10 billion; and
- Continue to consistently grow its annual dividend with a target
payout ratio of 40%-60% of free cash flow.
The regular quarterly dividend and share repurchases will be
funded through available cash and future cash flow generation. The
share repurchases will be executed in the open market or through
privately negotiated transactions at times and amounts determined
by the company based on its evaluation of market conditions and
other factors and may be suspended, discontinued or resumed at any
time.
Maxim Integrated Acquisition Earnings Accretion and Cost
Savings
The acquisition of Maxim Integrated is now expected to be
accretive to adjusted earnings in 12 months subsequent to closing,
six months ahead of the initial timeline, and is expected to be
neutral to adjusted earnings in fiscal 2022.
This accelerated timing relates to stronger business
fundamentals, the company’s commitment to repurchase shares through
an ASR and consistent buybacks, as well as the realization of more
than 40% of phase I cost synergies during this time.
Additional efficiencies from infrastructure optimization begins
in fiscal 2024 with revenue cross-selling opportunities in fiscal
2025 and beyond.
Special Investor Conference Call Replay
ADI hosted a webcast to discuss ADI’s updated capital allocation
priorities and updated accretion timeline on September 8, 2021. A
replay of the conference call may be accessed for up to two weeks,
by dialing 855-859-2056 and entering the conference ID:
7115409.
The press release, archived webcast, and accompanying
presentation may be accessed on the internet on Analog Devices’
Investor Relations website at investor.analog.com.
About Analog Devices
Analog Devices, Inc. (NASDAQ: ADI) operates at the center of the
modern digital economy, converting real-world phenomena into
actionable insight with its comprehensive suite of analog and mixed
signal, power management, radio frequency (RF), and digital and
sensor technologies. ADI serves 125,000 customers worldwide with
more than 75,000 products in the industrial, communications,
automotive, and consumer markets. ADI is headquartered in
Wilmington, MA. Visit http://www.analog.com.
Forward-Looking
Statements
This communication contains “forward-looking statements” within
the meaning of the federal securities laws. Forward-looking
statements address a variety of subjects, including, for example,
ADI’s capital allocation plan; statements as to the anticipated
benefits of the Maxim acquisition, the anticipated impact of the
acquisition on the combined organization’s business and future
financial and operating results, and the expected amount and timing
of synergies from the acquisition. Statements that are not
historical facts, including statements about ADI’s beliefs, plans
and expectations, are forward-looking statements. Such statements
are based on ADI’s current expectations and are subject to a number
of factors and uncertainties, which could cause actual results to
differ materially from those described in the forward-looking
statements. Forward-looking statements often contain words such as
“expect,” “anticipate,” “intend,” “plan,” “believe,” “will,”
“estimate,” “would,” “target” and similar expressions, as well as
variations or negatives of these words. The following important
factors and uncertainties, among others, could cause actual results
to differ materially from those described in these forward-looking
statements: the uncertainty as to the extent of the duration, scope
and impacts of the COVID-19 pandemic; political and economic
uncertainty, including any faltering in global economic conditions
or the stability of credit and financial markets; erosion of
consumer confidence and declines in customer spending;
unavailability of raw materials, services, supplies or
manufacturing capacity; changes in geographic scope or product or
customer mix; changes in export classifications, import and export
regulations or duties and tariffs; changes in ADI’s estimate of its
expected tax rate based on current tax law; ADI’s ability to
successfully integrate Maxim’s businesses and technologies; the
risk that the expected benefits and synergies of the Maxim
acquisition and growth prospects of the combined company may not be
fully achieved in a timely manner, or at all; adverse results in
litigation matters, including the potential for litigation related
to the transaction; the risk that ADI will be unable to retain and
hire key personnel; unanticipated difficulties or expenditures
relating to the transaction, the response of business partners and
retention as a result of the transaction; uncertainty as to the
long-term value of ADI’s common stock; and the diversion of
management time on transaction-related matters. For additional
information about other factors that could cause actual results to
differ materially from those described in the forward-looking
statements, please refer to ADI’s and Maxim’s respective periodic
reports and other filings with the Securities and Exchange
Commission, including the risk factors contained in ADI’s and
Maxim’s most recent Quarterly Reports on Form 10-Q and Annual
Reports on Form 10-K. Forward-looking statements represent
management’s current expectations and are inherently uncertain and
are made only as of the date hereof. Except as required by law, ADI
does not undertake or assume any obligation to update any
forward-looking statements, whether as a result of new information
or to reflect subsequent events or circumstances or otherwise.
(ADI-WEB)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210908006068/en/
Contacts for ADI
Investor Contact:
Mr. Michael Lucarelli 781-461-3282
investor.relations@analog.com
Media Contact:
Ms. Brittany Stone 917-935-1456 Brittany.Stone@teneo.com
Analog Devices (NASDAQ:ADI)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Analog Devices (NASDAQ:ADI)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024