Germany's Infineon to Acquire U.S. Rival Cypress in €9 Billion Deal
/avatars/BUoTZ6lM79yi.jpg)
/img/iea/4N61eEQR6J/chipmaker.jpg)
German chipmaker Infineon announced Monday plans to acquire U.S. rival Cypress for around nine billion euros ($10.1 billion). The firm is aiming to grab the number-eight spot in the industry with this acquisition and seeks to further extend its services into the Internet of Things.
RELATED: IBM ACQUIRES RED HAT FOR $34 BILLION TO BECOME WORLD'S TOP HYBRID CLOUD PROVIDER
Infineon revealed in a statement it came to an agreement to pay $23.85 per share in cash for Cypress.
"With this transaction, we will be able to offer our customers the most comprehensive portfolio for linking the real with the digital world," Infineon chief executive Reinhard Ploss said.
"This will open up additional growth potential in the automotive, industrial and Internet of Things sectors," he added.
Expanding into the Internet of Things
Infineon areas of expertise are power semiconductors, sensors, and security solutions but with this new acquisition, the firm will seek to expand into the Internet of Things. Cypress acquired the Internet of Things division of Qualcomm in 2016.
"Combining these technology assets will enable comprehensive advanced solutions for high-growth applications such as electric drives, battery-powered devices and power supplies," they said in the joint statement.
The acquisition is expected to bring €180 million in cost savings per year by 2022. Furthermore, Infineon added that the deal is expected to produce a revenue growth of at least 9 percent.
"Jointly, we will enable more secure, seamless connections, and provide more complete hardware and software sets to strengthen our customers’ products and technologies in their end markets. In addition, the strong fit of our two companies will bring enhanced opportunities for our customers and employees," said Hassane El-Khoury, President and CEO of Cypress.
Infineon also added that the acquisition will make it the world's number eight chip manufacturer.
SHOW COMMENT (1)
/img/iea/MRw4g8qn61/istock-1255872245.jpg "Breakthroughs in genomics show that 'junk' DNA is incredibly important")
/2023/03/29/image/jpeg/e2FQD6eSgkGw7Z2Of01VuhuAPEGkwbKkpATzYJU4.jpg "Bill Gates and other investors pump $29 million into a 'twisty' nuclear reactor")
/2022/11/03/image/jpeg/JpoPcfRFLao6z3wGvdtmDYWEiTlcF6dLR2raDT0D.jpg "JWST head reveals why the advanced telescope’s sunshield was surprisingly challenging")
/2023/03/30/image/jpeg/vXZ07k96dx1Wjgf5ihtNEGTWuKsLGfBpeUuAoS20.jpg "The Last of Us? 61-year-old infected with 'world first' plant fungus infection")
/2022/12/09/image/jpeg/9atg9W4SM4PuqehIWxfq8ae23Lk7C7yzOcHU6VPi.jpg "Propulsion technology: The rise of the commercialization of space")
/2023/03/29/image/jpeg/8IgnuE9Z0cyiNJ2oOL08NEsMVYG7TQQWmEiFcvMh.jpg "Keeping Ukraine’s sky safe from Russia: The U.S. made AN/TWQ-1 avenger missile system")
/2022/10/05/image/jpeg/BJnr4tFaYXzj4S1Z4eEWajVjWj7lwyEqC9E6geDn.jpg "How keeping cool just went green, thanks to solid refrigerants — The Blueprint")
/2023/03/30/image/jpeg/iXzS3ZgJQFpgx2l7B6KKbWjqVzt1k8RhkDli7Uum.jpg "GPT-5 expected this year, could make ChatGPT indistinguishable from a human")
/2022/10/19/image/jpeg/BWVTRa1icm3js6UWhOYHjDJeRqPcXky2gYzWI0mf.jpg "75+ essential AutoCAD shortcuts and commands for the speedy engineer")
/2023/03/29/image/jpeg/CrxrPvbwAWaIxlItwOPAUOW1U09j3YoIAIefi2uf.jpg "New rainbow films offer eco-friendly option for AC units, can cool your house and car")