Semiconductor giant Infineon Technologies will be acquiring embedded solutions provider Cypress for €9.0 billion.Under the agreement, Infineon will offer US$23.85 in cash for all outstanding Cypress shares. Once approved by Cypress’s shareholders and the relevant regulatory bodies and having met other customary conditions, the acquisition should be completed by end 2019 or early 2020.
“With this transaction, we will be able to offer our customers the most comprehensive portfolio for linking the real with the digital world. This will open up additional growth potential in the automotive, industrial and Internet of Things sectors. This transaction also makes our business model even more resilient. Together, we will continue our shared commitments to innovation and focused R&D investments to accelerate technology advancements,” said Reinhard Ploss, CEO of Infineon.
Cypress’ portfolio of microcontrollers as well as software and connectivity components are complementary to Infineon’s power semiconductors, sensors and security solutions. Combining these assets will enable comprehensive advanced solutions for high-growth applications such as electric drives, battery-powered devices and power supplies.
The combination of Infineon’s security expertise and Cypress’s connectivity know-how will accelerate entry into new IoT applications in the industrial and consumer segments. In automotive semiconductors, the expanded portfolio of microcontrollers and NOR flash memories will benefit advanced driver assistance systems and new electronic architectures in vehicles.
Cypress’ strong R&D and geographical presence in the US will help Infineon better support its North America customers.
“Jointly, we will enable more secure, seamless connections, and provide more complete hardware and software sets to strengthen our customers’ products and technologies in their end markets,” said Hassane El-Khoury, President and CEO of Cypress.