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Monday, June 3, 2019

=Cypress Semi (CY) to be acquired by Infineon Technologies (IFNNY) for $23.85/share

  • Update 3/10/20:  Infineon's acquisition of Cypress Semiconductor was approved by U.S. regulators.
  • Germany's Infineon Technologies agreed to buy Cypress Semiconductor (CY) for $8.7 billion cash, or $10 billion including assumed debt. The $23.85 a share offer for Cypress is a 34% premium to Cypress stock at Friday's close and about 50% from before reports that Cypress was putting itself up for sale.

German chipmaker Infineon is buying U.S.-based Cypress Semiconductor Corp. for more than $10 billion.
Infineon will pay $23.85 for each outstanding share of Cypress in the deal, which is expected to close late this year or early in 2020. The companies said the sale price represents a 46% premium to Cypress's share price over the past six weeks.
Infineon said Monday the acquisition will make it the eighth biggest chipmaker in the world and the leading supplier of chips to the automotive sector.
The companies expect cost synergies of 180 million euros ($201 million) per year by 2022.
Shares in the San Jose, California-based Cypress jumped more than 20% in premarket trading. The company, which specializes in wireless and USB technology, had $539 million in revenue in the first quarter.

The offer price represents a 46 percent premium to Cypress's unaffected 30-day volume-weighted average price during the period from 15 April to 28 May 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's previously announced quarterly cash dividend of US$0.11 per share, payable on July 18, 2019 to holders of record of Cypress's common stock at the close of business on June 27, 2019.

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