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    Categories: Electronics and semiconductor

Infineon reportedly in talks to buy US-based Cypress Semiconductor

Cypress Semi has been trying to reform itself as a manufacturer of chips for use in the vehicles and emerging market for internet of things
Reports suggest that Infineon Technologies AG is in talks to acquire Cypress Semiconductor Corp, in an agreement which values the U.S. chipmakerat approximately $10 billion, including debt.
Sources familiar with the matter mentioned that Infineon, a German semiconductor manufacturer, will pay between $23 to $24 per share for Cypress Semiconductor. The offer is at premium of more than 50% over the stock value when sources had informed in the previous week that Cypress Semiconductor was exploring options of sale after it received takeover interest.
Recently, the company shares had closed at $17.82, which gave the company a market value of $6.5 billion.
Apparently, Infineon, with a total market value of around 18.2 billion euros, has not got involved over the past five years as the semiconductor industry has been reformed by deal making. In 2017, Infineon had terminated a deal to buy the lighting maker Cree Inc's Wolfspeed Power unit after a national security review by the U.S.
Sources stated that the shares of Infineon have lost around a third of their value over the last year, as the chipmaker revised its forecasts twice among economic uncertainties globally and a slowdown in car sales in China.
Seemingly, Cypress Semi has been trying to reform itself as a manufacturer of chips for use in the vehicles and emerging market for internet of things, driven by the electronics industry to connect devices. Investors of the company are expecting its automotive business to grow by 8% to 12% over the next five years and along with this, its IoT unit could expand at more than 14% in that period.
With the help of an acquisition, the annual revenue of Cypress has more than doubled to $2.5 billion in 2018 over the previous five years. Analysts are expecting that the sales growth will slow down in 2019, predicting a contraction of nearly 11%, sources added.
Source Credit: https://www.bloomberg.com/news/articles/2019-06-03/infineon-is-said-to-near-deal-to-acquire-cypress-semiconductor
Pranali Mehta:

Pranali Mehta boasts of over three years of experience as a content writer. Having completed her graduation in chemical engineering, she worked as safety & environment associate in a chemical company for a year. Harnessing her passion for writing however, Pranali decided to pursue content development as a full-time career and has written several diverse articles. Her other interests include reading, binge-watching movies & web series, gardening and home décor.

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