Cypress and Spansion complete USD5 Billion all-stock merger
In a special meeting on Friday 13th of March, Cypress shareholders approved the issuance of 2.457 shares of Cypress stock to Spansion shareholders for each Spansion share they own.
Spansion shareholders approved the merger in a separate special meeting. The merger is expected to achieve more than USD135 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. The combined company will continue to pay USD0.11 per share in quarterly dividends to shareholders.
“We closed this merger even more quickly than originally anticipated, accelerating our strategic and financial roadmap,” stated Cypress President and CEO T.J. Rodgers in a press release. “From Day One, the new Cypress will capitalize on its expanded product portfolio and leadership positions in embedded processing and specialized memories to significantly extend its penetration of global markets such as automotive, industrial, consumer, wearable electronics and the Internet of Things.”
“Consider the automotive market, where Cypress has a dominant position in capacitive touch-sensing controllers and SRAMs for infotainment systems, and Spansion is the leading supplier of flash memory and microcontrollers for infotainment, body and climate control systems, instrument clusters and advanced driver assistance systems,” Rodgers said.
“The new Cypress will be the No. 3 chip supplier worldwide of memories and microcontrollers to this business. No. 1 in SRAMs, No. 1 in NOR flash and No. 3 overall.”
Visit Cypress at www.cypress.com