Cypress Semiconductor and Spansion have announced a definitive agreement to merge in an all-stock, tax-free transaction valued at approximately $4 billion. The post-merger company will generate more than $2 billion in revenue annually.
T.J. Rodgers, Cypress's founding president and CEO, commented, “Our combined company will be a leading provider of embedded MCUs and specialized memories. We will also have extraordinary opportunities for EPS accretion due to the synergy in virtually every area of our enterprises.”
“Bringing together these high-performing organisations creates operating efficiencies and economies of scale, and will deliver maximum value for our shareholders, new opportunities for employees and an improved experience for our customers,” said John Kispert, CEO of Spansion. “With unparalleled expertise, global reach in markets like Japan and market-leading products for automotive, IoT, industrial and communications markets, the new company is well positioned to ....execute on our long-term vision of adding value through embedded system-on-chip solutions.”
Cypress and Spansion expect the merger to be complete in the first half of 2015.