Cypress Semiconductor acquires Spansion for $1.6 Billion

Cypress Semiconductor acquires Spansion for $1.6 Billion

Cypress Semiconductor acquires Spansion for $1.6 Billion

The computer chip manufacturer Cypress Semiconductor agreed to buy Spansion, flash memory and specialized products maker, for $1.6 billion in stock deal, all transaction is valued at approximately $4 billion.

Under the terms of deal, Cypress will pay 2.457 of its shares for each Spansion share. On Monday closing price takeover offer is with nearly 12 percent premium.

The transaticion is the latest move for Spansion from AMD and Fujitsu joint venture businesses before becoming an independent company in 2005.

Each company will place four of its directors to board of directors in combined company, with current chairman of Spansion Ray Bingham serving as nonexecutive chairman.

The combined company, which will be exist under Cypress name, will be led by CEO of Cypress, T.J. Rodgers.

The deal is expected to close in the first half of next year.

Cypress was adivsed from investment bank Qatalyst Partners, and the law firm Wilson Sonsini Goodrich & Rosati. Spansion was advised by Jefferies, Morgan Stanley and the law firms Fenwick & West and Latham & Watkins.

 Mr. Stakebay says:

Combined company expects sales over $ 2 billion each year. Estimated cost savings increased to more than $135 million during  next three years.

 

CYPRESS SEMICONDUCTOR CORP.

SPANSION

Revenue

$722.69 Million (2013)

$ 971.69 Million (2013)

Operating income

 $ – 48. 21 Million (2013)

$ – 58.422 Million (2013)

Profit

$ – 46.36 Million (2013)

$ – 78.268 Million (2013)

Total assets

$ 765.84 Million (2013)

$ 1.381 Billion (2013)

Total Equity

$ 183.11 Million (2013)

$ 537.46 Million (2013)

Employees

3400 (2013)

3685 (2013)

 

CEO of CYPERSS SEMICONDUCTOR …T. J. RODGERS….1982 – present…. $ 2 996 266 (2013)

CEO, President and Director of SPANSION inc..JOHN KISPERT.. 2014 – present..$ 3 856 194(2013)

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