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© batman2000 dreamstime.com Business | June 02, 2015

Cypress and Spansion completes $5 billion merger

Cypress Semiconductor and Spansion have closed the merger of the two companies in an all-stock, tax-free transaction valued at approximately USD 5 billion.
The merger is expected to achieve more than USD 135 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.

"We closed this merger even more quickly than originally anticipated, accelerating our strategic and financial roadmap," said Cypress President and CEO T.J. Rodgers said. "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. You can think of the post-merger company truly in terms of the well-known equation: 1 + 1 = 3: No. 1 in SRAMs, No. 1 in NOR flash and No. 3 overall."

"Spansion's exceptional team and technology leadership in high-performance memory and MCUs will complement Cypress's strong capabilities. This merger was an important step forward in Spansion's transformation into a global embedded systems leader," said Kispert, CEO of Spansion and a member of the Cypress board of directors.
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