Cypress Semiconductor Corp. CY and Spansion, Inc. CODE announced Monday that they will merge in an all-stock, tax-free transaction valued at approximately $4 billion.
According to the joint press release, “The post-merger company will generate more than $2 billion in revenue annually and create a leading global provider of microcontrollers and specialized memories needed in today's embedded systems.”
The combined company will be No. 1 worldwide in NOR Flash and SRAM memories, provide EPS accretion with $135 million in annual synergies, provide ~50 percent ownership each for Cypress and Spansion shareholders and pay an $0.11 per share quarterly dividend to all shareholders.
"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 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."
Cypress Semiconductor Corp. closed at $10.43 Monday, down 1.60 percent.
Spansion, Inc. traded at $25.35 in the aftermarket, up 10.94 percent.
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