Cypress Semiconductor and Spansion have finalised their merger in an all-stock, tax-free transaction valued at about $5 billion. In a recent meeting, Cypress shareholders have 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 $135 million in cost synergies on an annualised 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 $0.11 per share in quarterly dividends to shareholders.

"We closed this merger even more quickly than originally anticipated, accelerating our strategic and financial roadmap," said Cypress president and CEO T.J. Rodgers. "From day one, the new Cypress will capitalise on its expanded product portfolio and leadership positions in embedded processing and specialised 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 MCUs 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 MCUs to this business. No. 1 in SRAMs, No. 1 in NOR flash and No. 3 overall."

By: DocMemory
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