Cypress Semiconductor Corp. and Spansion, Inc. today announced an agreement to merge in an all-stock, tax-free transaction valued at approximately US $4 billion. The post-merger company will generate more than US $2 billion in revenue annually and create a leading global provider of microcontrollers and specialised memories needed in today’s embedded systems, said Cypress in a statement.
“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 Rodgers, Cypress’s founding President and Chief Executive Officer (CEO). “Our combined company will be a leading provider of embedded MCUs and specialised memories.”
The Spansion chairman will serve as the non-executive chairman of the combined company, which will be headquartered in San Jose, California and will be called Cypress Semiconductor Corporation. T J Rodgers of Cypress will be its CEO.
The combined company will:
• Be a $2 billion global leader in microcontrollers and specialised memories for embedded systems
• Be No. 1 worldwide in NOR Flash memories
• Be No. 1 worldwide in SRAM memories
• Provide significant EPS accretion with $135 million in annual synergies
• Have T.J. Rodgers of Cypress as CEO and Ray Bingham of Spansion as non-executive Chairman
Image Credit: Cypress Semiconductor Corp.
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