Infineon Technologies and Cypress Semiconductor announced that Infineon will acquire Cypress for US$23.85 per share in cash, corresponding to an enterprise value of €9.0 billion. According to Reinhard Ploss, Infineon’s CEO, “The planned acquisition of Cypress is a landmark step in Infineon’s strategic development. With this transaction, we will be able to offer our customers the most comprehensive portfolio for linking the real with the digital world. This will open up additional growth potential in the automotive, industrial and Internet of Things sectors. Together, we will continue our shared commitments to innovation and focused R&D investments to accelerate technology advancements.”
Hassane El-Khoury, President and CEO of Cypress, added “The Cypress team is excited to join forces with Infineon to capitalize on the multi-billion-dollar opportunities from the massive rise in connectivity and computing requirements of the next technology waves. Jointly, we will enable more secure, seamless connections, and provide more complete hardware and software sets to strengthen our customers’ products and technologies in their end markets.”
The addition of Cypress strengthens Infineon’s ability to serve a broader range of applications and accelerate the company’s structural growth drivers. Cypress has a differentiated portfolio of microcontrollers as well as software and connectivity components that complement Infineon’s power semiconductor, sensor, and security solutions. This combination will accelerate IoT application development in the industrial and consumer segments as well as advanced driver assistance systems and new electronic architectures in vehicles.
Under the terms of the agreement, Infineon will offer US$23.85 in cash for all outstanding shares of Cypress. This corresponds to a fully diluted enterprise value for Cypress of €9.0 billion. The offer price represents a 46 percent premium to Cypress’ unaffected 30-day volume-weighted average price during the period from April 15 to May 28, 2019, the last trading day prior to media reports regarding a potential sale of Cypress.
Cypress expects to continue its quarterly cash dividend payments until the transaction closes. This includes Cypress’ previously announced quarterly cash dividend of US$0.11 per share, payable on July 18, 2019 to holders of record of Cypress’ common stock at the close of business on June 27, 2019.