Cypress Semiconductor General Information Description. Financial rationale of the merger confirmed On 3 June 2019, Infineon and Cypress announced that the companies had signed a definitive agreement under which Infineon would acquire Cypress for US$23.85 per share in cash, corresponding to an enterprise value of €9.0 billion. Those who took a chance and bought the dip were rewarded when, a few days later, the Committee on Foreign Investment in the U.S. (CFIUS) went ahead and approved the deal. The back story. Mar. Infineon, Europe's biggest semiconductor group, said it would pay $23.85 per share for Cypress, a major supplier of Wi-Fi/Bluetooth connectivity … The merger could result in synergies, since Spansion is also well-positioned in these markets. That's good for another 0.5% gain. As fellow Fool.com contributor Leo Sun pointed out, a small portion (a low single-digit percentage) of Cypress sales are to U.S. defense companies. Cypress expects the merger to close on or about April 16, 2020, pursuant to the terms of the merger agreement. It was formed in 1982 with backing by Sevin Rosen and went public in 1986. The acquisition of Cypress Semiconductor Corporation ( … Nicholas has been a writer for the Motley Fool since 2015, covering companies primarily in the consumer goods and technology sectors. It represented a 55% premium (at last share price before the news) for owners of the volatile Silicon Valley hardware maker, and shares raced higher to within a few percentage points of the offer price. Chinese regulatory scrutiny has been equally elevated on deals that could go the opposite direction -- like when it blocked U.S.-based Qualcomm from taking over Dutch chipmaker NXP Semiconductors back in 2018 during the U.S.-China trade war spat. Last year, has been rapid though a dropping hand scenario was witnessed unlike 2018 where M&A were on a spree. Business data for Cypress Semiconductor Corporation: This page was last edited on 12 January 2021, at 05:13. Merger news prompted huge swings for the chip stock last month. Stock Advisor launched in February of 2002. German chip maker Infineon Technologies said it would acquire Cypress Semiconductor in a multi-billion dollar deal, the latest in a series of transactions that have been reshaping the industry. While shareholders of both companies approved the tie-up, a regulatory review has meant Cypress has remained independent for the time being -- although shares have held steady above $23 as the expected closure of the sale approached. [3][4], Its headquarters are in San Jose, California, and it has operations in the United States, Ireland, India and the Philippines. Even American chipmakers (Cypress included) rely on China for sales and a substantial portion of the manufacturing and supply chain process. Infineon's Shawn Slusser updates us on the progress of its $10 billion deal to buy Cypress Semiconductor… He enjoys the outdoors up and down the West Coast with his wife and their Humane Society-rescued dog. It was formed in 1982 with backing by Sevin Rosen and went public in 1986. This buyer consortium offered a higher bid than Cypress and successfully acquired ISSI for $731 million. German chip maker Infineon Technologies said it would acquire Cypress Semiconductor in a multi-billion dollar deal, the latest in a series of transactions that have been reshaping the industry. With regulators in Europe and the U.S. paving the way for the combination, there's just one more hurdle: Chinese regulators. So what was the rub? [13] Cypress Semiconductor is a component of the Ocean Tomo 300 Patent Index. Shares of defense-focused chipmaker and designer Cypress Semiconductor (CY) - Get Report plunged another 11% on Friday following reports … The merger is expected to achieve more than $135 million in cost synergies on an annualized basis within three years and to be accretive to non-GAAP earnings within the first full year after the transaction closes. In June 2019, Infineon Technologies announced it would acquire Cypress for $9.4 billion. The acquisition of Cypress Semiconductor Corporation by Infineon Technologies AG for $9.56 billion or $23.85 per share in cash. This isn't out of the ordinary, though. Cypress expects the merger to close on or about April 16, 2020, pursuant to the terms of the merger agreement. Returns as of 03/09/2021. The Motley Fool has a disclosure policy. [22] Prior to Bingham’s resignation, shareholder-advisory firms ISS, Glass Lewis and Egan-Jones had recommended McCranie and Martino, Rodgers's nominees, citing "additional - and sharper - questions not only regarding the board's handling of this situation but also regarding the potential for conflicts of interest inherent in Bingham's dual roles. Cypress (a wholly-owned subsidiary of Infineon Technologies AG), is a leader in advanced embedded solutions for the world’s most innovative automotive, industrial, smart home appliances, consumer electronics and medical products. In October 2009, the company announced it would switch its listing to the NASDAQ on November 12, 2009. The merger is expected to achieve more than $135 million in cost synergies on an annualized basis within three years and to be accretive to non-GAAP earnings within the first full year after the transaction closes. Cypress was headquartered in San Jose, CA and had manufacturing plants in Austin, TX and Bloomington, MN, assembly and test operations in the Philippines and Bangkok, Thailand. CFIUS, a body led by the U.S. Treasury, informed Cypress that it had determined "there are no unresolved national security concerns" with the merger… Cypress Semiconductor Corp. (NASDAQ: CY) … [25] This purchase price premium of 55% was the 4th highest premium paid for a public semiconductor company with greater than $1 Billion in value since 2014. Cypress Semiconductor shares jumped 27% in pre-market trade. However, CFIUS's concerns were likely allayed as Cypress' capabilities are also offered by other chipmakers, so the regulator signed off on the deal. What a roller coaster. Cypress expects the merger to … [14], Cypress attempted to acquire Integrated Silicon Solution Inc. in 2015 but was thwarted by a competing bid by Chinese buyer consortium Uphill Investment Co., which included GigaDevice, a major competitor in the NOR flash market. [26] The price also represented 18.2 times next twelve month average analyst EBITDA estimates, which was the 4th highest EBITDA multiple paid for a public semiconductor company with a value greater than $1 Billion since 2014. Facing the merger with Infineon, the investors' key takeaway of my former analysis was that even though Cypress … The Motley Fool recommends Cypress Semiconductor. Two years after going public the company switched from the NASDAQ to the New York Stock Exchange. He is also the founder and president of Concinnus Financial, a Registered Investment Advisor based in Spokane, WA. The deal was closed in July 2016. Since the early 1990s, acquisitions have included: PSoC programmable system-on-chip solutions, "US SEC: Form 10-K Cypress Semiconductor Corporation", "Infineon acquires Cypress Semiconductor for $9.4B", "Infineon completes acquisition of Cypress", "Infineon Technologies AG completes acquisition of Cypress Semiconductor Corporation", "Cypress Semiconductor Picks New CEO From Auto Tech", "Cypress Closes $550 Million Acquisition Of Broadcom's 'Internet Of Things' Business", http://archive.computerhistory.org/resources/access/text/2013/04/102723387-05-01-acc.pdf, "Cypress Semiconductor Corp. to Switch Stock Exchange Listing to NASDAQ on November 12", "Cypress and Spansion Complete $5 Billion All-Stock Merger", Cypress and Spansion to Merge in $4 Billion All-Stock Transaction, "Cypress Semiconductor 2015 Form 10-K Annual Report", "ISSI Shareholders Approve Acquisition by Uphill Investment", "Cypress Semiconductor drops bid for chipmaker Atmel", "Cypress to Pay $550 Million for Broadcom's IoT Business | EE Times", "Cypress Subsidiary Deca Technologies to Receive $60 Million Investment from ASE", "Cypress Semiconductor forced to delay annual meeting by Delaware court", "Exclusive: Chinese government money backs buyout firm's deal for U.S. chip maker", "Cypress Semiconductor Must Turn Over Docs to Former CEO", "Cypress Executive Chairman Ray Bingham steps down from board", "STMicroelectronics N.V. (STM) and Cypress Semiconductor Corporation (CY) Swings Under News Buzzer | Investing Bizz", "Cypress Stockholders Elect T.J. Rodgers' Nominees to Board", "Cypress Semiconductor Takes One Last Bow on the Earnings Stage", https://www.sec.gov/Archives/edgar/data/791915/000110465919033288/a19-10962_2ex99d5.htm, https://en.wikipedia.org/w/index.php?title=Cypress_Semiconductor&oldid=999834014, Semiconductor companies of the United States, Technology companies based in the San Francisco Bay Area, Manufacturing companies based in San Jose, California, Electronics companies established in 1982, American subsidiaries of foreign companies, Short description is different from Wikidata, Articles needing cleanup from November 2016, Articles with sections that need to be turned into prose from November 2016, Wikipedia articles with Trove identifiers, Wikipedia articles with WORLDCATID identifiers, Creative Commons Attribution-ShareAlike License, SMaL Camera Technologies(Sold to Sensata Technologies in 2007).