- Infineon and Cypress signed a definitive agreement for the acquisition in July 2019
- The move, as informed by Infineon, will accelerate its way into IoT markets
Infineon Technologies (Infineon) today announced that all necessary regulatory approvals have been received for its acquisition of Cypress Semiconductor Corporation (Cypress). Infineon expects to close the transaction within five business days.
“With the acquisition, Infineon will be able to offer the industry’s most comprehensive portfolio for linking the real with the digital world and shaping digitalization. The company’s path of profitable growth will be accelerated by evolving from a leader in components to a leader in system solutions for the automotive, industrial and Internet of Things (IoT) markets,” read Infineon’s official statement.
Cypress made $2.21 billion revenue in 2019
Cypress had posted fiscal year revenues of $2.21 billion. The company had said that its revenues were down 6.1 per cent year-over-year after adjusting for the divestiture of our NAND business, which was completed on 1st April 2019.
Infineon and Cypress entered into an agreement and plan of merger providing for Infineon to acquire Cypress for $23.85 per share in cash, corresponding to an enterprise value of approximately $10 billion.
“We ended the year strongly in the fourth quarter, with our automotive revenue achieving a quarterly record and our IoT business up 18 per cent compared to the fourth quarter of 2018. Our focus on maximizing profitability and cash flow continues to pay off as evidenced by our record cash from operations of $479 million in 2019,” Hassane El-Khoury, Cypress’ president and chief executive officer said early this year.
The transaction will initially be funded through a combination of cash on hand and a committed acquisition financing facility provided by banks. Infineon will use the proceeds from the share placement and the issuance of the hybrid bond in 2019, totalling 2.7bn EUR.