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.
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