Cypress and Spansion to merge in USD 4 billion transaction

The post-merger company will generate more than USD 2 billion in revenue annually and create a global provider of microcontrollers and specialised memories needed in embedded systems. “This merger represents the combination of two smart, profitable, passionately entrepreneurial companies that are No. 1 in their respective memory markets and have successfully diversified into embedded processing,” said T.J. Rodgers, Cypress’s founding president and CEO. “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.” The merger is expected to achieve more than USD 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. “Bringing together these high-performing organizations 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 deliver best-of-breed solutions and execute on our long-term vision of adding value through embedded system-on-chip solutions.”