How do I record the recent merger of Analog Devices with Maxim Integrated Products?

Papa Jay

How do I record the recent merger of Analog Devices with Maxim Integrated Products?

Jim_Harman

@Papa Jay You have posted the same question several times now. Please wait for a response before posting again.

q_lurker

This appears to be a straight-forward corporate acquisition. From the account transaction list, use the Enter Transaction button to get to the Corporate Acquisition action. Analog acquires Maxim at a share ratio of 0.630 effective 8/26/21. Confirm those details through your brokerage. Closing price of ADI on 8/26 was 167.36. If needed, you will sell any fractional share you were due for a cash-in-lieu amount you will see in your account shortly. 

Frankx

Hi @Papa Jay

You need to use the "Corporate Acquisition (stock for stock)" transaction type.  It is one in a long list of transaction types available in the "Enter transaction:" drop-down list for brokerage and other investing type accounts.

You will need to enter the names of "Company acquired", the "Acquiring company", the "New shares issued - per share held" and "The price per share for the acquiring company after the acquisition".

Make sure that you make a backup of your Quicken datafile before entering the transaction (just in case something goes wrong.

Let me know if you have any followups.

Frankx

gsb88

Hi - why do we need the "The price per share for the acquiring company after the acquisition" for a stock for stock transaction? That shouldn't effect cost basis info correct? Is it just to give a market price of the new stock, ADI?

q_lurker

@gsb88 - I believe that is correct. 

Frankx

Hi @gsb88

Yes, in order to effect the acquisition transaction, including the value of the holdings post acquisition, the price per share of the new stock is used.

Frankx