Cypress Semiconductor

The Cypress Semiconductor company is known as the producer  of highly effective programmable solutions on one crystal with hardware cores, different types of memory and USB buses. Semiconductor products of the producer are used in consumer electronics, mobile devices, automotive industry, etc.

History

2019: Infineon purchased Cypress for 9 billion euros

At the beginning of June, 2019 Infineon Technologies announced acquisition of Cypress Semiconductor for 9 billion euros. Thanks to this transaction Infineon becomes the leader of the world market of automobile chips.

Under the terms of the agreement, Infineon will pay for each stock Cypress $23.85 from own means that it more than for 50% exceeds a quotation rate before the first rumors about a company merger appeared.

Infineon made purchase for 9 billion euros and becomes the leader the market of automobile chips

The companies expect execute all formalities concerning this transaction at the end of 2019 or the beginning of the 2020th. At first regulators should approve it.

Thanks to merger of Cypress the Infineon company will be able to expand considerably the presence in the market of North America and also in Japan. And on revenue level the united company will become the eighth in value producer of microchips in the world.

It is supposed that Infineon will be able to accelerate mastering of new IoT-solutions in industrial and consumer segments, in  automobile electronics, etc.

Infineon expects that purchase of Cypress will provide synergy  regarding  revenue  in the amount of 1.5 billion euros. Infineon will pay 4.5 times more annual revenues of Cypress within the transaction.

From our point of view, it was reasonable price and if to look at synergy, then the transaction provides an additional gain of income — the CEO of Infineon Reinhard Ploss told journalists.

The marketing director Helmut Gassel told that there were still applicants for Cypress purchase. Who exactly, is not specified.^[1]

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