• The two sides are highly complementary in terms of technology, which will further expand our market potential in high-growth markets such as automotive, industrial and IoT.
• Infineon will acquire Cypress for $23.85 per share for a total value of 9 billion euros.
• By the end of 2022, the acquisition transaction will generate an annual cost synergy of 180 million euros; in the long run, the annual revenue synergy will reach 1.5 billion euros.
• The transaction is expected to be completed by the end of 2019 or early 2020; it is expected to bring profitable appreciation in the first full fiscal year after the transaction is completed.
• Future target operating model after integration: revenue growth of over 9%, operating margin of 19% and investment sales ratio of 13%.
In automotive semiconductors, the expanded combination of microcontrollers and NOR flash memory will offer great potential, especially in the application of advanced driver assistance systems and new automotive electronic architectures. Infineon CEO Reinhard Ploss said: "The planned acquisition of Cypress is an important step in the strategic development of Infineon. We will strengthen and accelerate our profit growth and conduct business on a broader basis."
Infineon said that after the acquisition of Cypress, it will strengthen the core of promoting structural growth and apply the company's technology to a wider range of areas. This will accelerate the foundation for strengthening the company's profit growth in recent years. Cypress has a differentiated portfolio of microcontrollers, software and connectivity components that complements Infineon's leading power semiconductor, sensor and security solutions. Combining the technical assets of both parties will provide a more comprehensive and advanced solution for high-growth applications such as electric motors, battery-powered devices and power supplies. Infineon's security expertise combined with Cypress's connectivity technology will enable the company to accelerate its entry into new IoT applications in the industrial and consumer markets.
“Through this transaction, we will be able to offer our customers the most comprehensive product portfolio, linking the real world to the digital world. This will bring additional growth potential to the automotive, industrial and IoT sectors. This transaction also makes our business The model is more flexible. We look forward to Cypress's new colleagues joining Infineon. We will continue to work together on innovation and key R&D investments to accelerate technological advancement,” said Infineon CEO Reinhard Ploss.
Cypress President and CEO Hassane El-Khoury said: "The Cypress team is pleased to work with Infineon to take advantage of the multi-billion dollar opportunity brought about by the surge in connectivity and computing demand in the next technology wave. This announcement not only demonstrates the strength of our team's industry-leading solutions on a global scale, but also demonstrates the goals that our two great companies can achieve together. We will work together to achieve a safer, more seamless connection and more complete Hardware and software sets to enhance customers' products and technologies in the end market. In addition, the strong fit of our two companies will bring more opportunities to our customers and employees."
Cypress Chairman Steve Albrecht said: "Over the past three years, our Cypress 3.0 strategy has achieved great results and reorganized the entire organization, focusing on important markets. After receiving interest from several companies, We conducted a transaction that demonstrated the strategy and efforts of our team. For Cypress shareholders, the combination of a continuous dividend and a cash price of $23.85 represents a huge value creation. The deal will create As an increasingly important product opportunity in the highly competitive automotive, industrial and consumer markets. As a board member, we are grateful to Cypress's outstanding management team, led by Hassane El-Khoury."