Published On : 2019-06-04
Infineon Technologies, a German semiconductor manufacturer, has announced that it will acquire Cypress Semiconductor, an American semiconductor design and manufacturing company, at US$23.85 per share, which is equivalent to an enterprise value of approximately €9.0 Bn or $10 Bn. Infineon will make the payment in cash for the acquisition that is expected to see closure by the end of 2019 calendar year or early 2020. The transaction is subject to customary closing conditions and the approvals of regulatory authorities and Cypress shareholders. Through the acquisition, Infineon will be able to serve a wider scope of applications and increase its focus on structural growth drivers.
“Our team is delighted to join Infineon for capitalizing on the multi-billion-dollar opportunities from the tremendous increase in computing and connectivity requirements of the next technology waves. The announcement not only testifies about our team’s strength to deliver industry-leading solutions globally, but also what could be realized as our two great companies unite,” said President of Cypress, Hassane El-Khoury.
Combination of the two companies to accelerate entry into new IoT applications
“Together, we’ll provide more complete software and hardware sets and enable more seamless, secure connections for strengthening the technologies and products of our customers in their end markets. Additionally, the strong fit of our two companies will create improved opportunities for our employees and customers,” added El-Khoury.
Entry into new IoT applications in the consumer and industrial segments will be accelerated because of the combination of Infineon’s security expertise and Cypress’ connectivity know-how. Furthermore, Infineon will increase its capabilities for major North American customers and also customers in other significant regions as it banks on Cypress’ robust regional and research and development presence in the US.
“The planned acquisition of Cypress is a landmark step in our company’s strategic development. We will put our business on a broader basis and accelerate and strengthen our profitable growth. With this acquisition, our company will be able to offer the most comprehensive portfolio to our customers to link the real world with the digital one. This will open up additional growth potential in the IoT, industrial, and automotive sectors,” said CEO of Infineon, Reinhard Ploss.
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