VentureBeat Homepage.cls-1{fill:#ed2025;}.SiteLogo__v{fill:#ffffff;}. The dividend will not be paid if the closing of the acquisition of Cypress by Infineon Technologies AG (“Infineon”) under the previously announced Agreement and Plan of Merger, dated June 3, 2019, occurs prior to the close of business on December 26, 2019 such that Cypress is a wholly-owned subsidiary of Infineon at that time. Though it means fewer sales and lower profits, Cypress' overall gross margin on product will be higher and the company will enjoy cash flow from the joint venture when the digital chip industry does well -- which it isn't right now. Cypress said it would have to pay a $330 million break fee if Infineon is outbid. With the run nearly over, it's time for owners of the stock to begin planning an exit. Infineon acquired Cypress Semiconductor Corporation in 2020. Infineon says the deal will secure future opportunities in automotive, industrial, and IoT markets. Neither representatives for Infineon nor Cypress responded to inquiries as to whether the companies have filed their notices with CFIUS. But nothing's certain in the world of business and finance, so though financials for the first half of 2019 are likely Infineon's problem, here they are in case investors get dealt a surprise. Infineon acquires Cypress Semiconductors in $10 billion deal. The companies expect the transaction to close by the end of 2019 or early 2020. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Maybe a 4% or so return with a little uncertainty baked in is good enough for some investors, but it isn't good enough for me to wait until the midnight hour. That $44 billion deal was much larger than this $10 billion one, and Germany isn't embroiled in a trade war with China (Qualcomm's home market) like the U.S. is. The companies have said they expect to close their transaction by the end of calendar year 2019 or early 2020. The stock price represents an all-time high for Cypress, and it’s a nice way for a legendary Silicon Valley to go out. Early to recognize the value of improved solar cells made from silicon, Rodgers invested in SunPower in 2002 and helped it launch an initial public offering in 2005. However, as the close of 2019 gets closer, the deal closing date becomes more certain, and shares continue to near their $23.85 target, it will be time to part ways with Cypress Semiconductor. Overall, it should still be a good move for the long haul as Cypress continues to narrow its focus on connectivity and other next-gen technologies. There's always that small risk that things will fall apart, and second-quarter results weren't good enough to prevent some sort of Cypress stock retracement back to pre-deal levels if Infineon has to walk away. He enjoys the outdoors up and down the West Coast with his wife and their Humane Society-rescued dog. So the chances of the Cypress deal closing seem decidedly better. The companies expect the transaction to close by the end of 2019 or early 2020. Infineon will pay between $23-$24 a share for Cypress Semiconductor, Bloomberg reported, citing … Infineon Technologies AG is a German semiconductor manufacturer founded in 1999, when the semiconductor operations of the former parent company Siemens AG were spun off. On April 7, 2020, Cypress Semiconductor announced that Infineon Technologies AG has obtained antitrust clearance from China's State Administration for Market Regulation for Cypress… That’s 55% higher than the stock price last week before the news started to leak. Infineon to acquire Cypress, strengthening and accelerating its path of profitable growth PR Newswire MUNICH, Germany and SAN JOSE, Calif., June 3, 2019 - Infineon … All relevant authorities have given their approval and we expect to legally close … Within the next few months, I'll be selling -- just in case. After spending years transforming itself from a commodity semiconductor outfit into a leading connectivity provider powering a myriad of devices from smartwatches to auto technology, Cypress will become a subsidiary of Infineon as early as the fourth quarter 2019. Cypress Semiconductor Takes One Last Bow on the Earnings Stage Sales and earnings are trending way lower as the chip designer inches closer to completing a merger with Infineon. YOY = year over year. If German chipmaker Infineon (OTC:IFNNY) gets the sign-off from shareholders and regulators, the second-quarter 2019 report will be the last for Cypress Semiconductor (NASDAQ:CY). Its product range is a perfect match. In fiscal year 2020, the company achieved sales of … Learn how brands are increasing customer loyalty and personalization with these best practices. On June 3, Cypress Semiconductor shares rose ~25% in pre-market trade after the company agreed to a buyout offer from Infineon Technologies. Join us for the world’s leading event about accelerating enterprise transformation with AI and Data, for enterprise technology decision-makers, presented by the #1 publisher in AI and Data, up-to-date information on the subjects of interest to you, gated thought-leader content and discounted access to our prized events, such as. (Reuters) - German chipmaker Infineon Technologies AG is nearing a deal to buy Cypress Semiconductor Corp, valuing the U.S. chipmaker at almost $10 billion, Bloomberg reported on Sunday. Fellow Fool contributor Anders Bylund explains here how to profit from the pending takeover. Cumulative Growth of a $10,000 Investment in Stock Advisor, Infineon Is Getting a Good Asset in Cypress Semiconductor @themotleyfool #stocks $CY $IFNNY $QCOM $NXPI, Cypress will become a subsidiary of Infineon, Why Cypress Semiconductor Stock Rose 1% in March, With Cypress Semiconductor’s Merger Drama Ending, It May Offer Way to Offset Market Turbulence, Stock Market Wrap-Up: Cypress Semiconductor Deal Approved; Inovio Fights Back, Why Cypress Semiconductor Stock Skyrocketed Today, Infineon’s Planned Takeover of Cypress Semiconductor Is in Serious Trouble, Copyright, Trademark and Patent Information. Infineon has agreed to buy Cypress Semiconductors in a deal valuing the U.S. chipmaker at 9 billion euros ($10.06 billion), including debt, the German company said on Monday. Munich, Germany, and San Jose, California – 16 April 2020 – Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) announced today the Closing of the acquisition of Cypress Semiconductor Corporation. Infineon will pay between $23-$24 a share for Cypress Semiconductor, Bloomberg reported, citing two people familiar with the matter. This includes Cypress’s previously announced quarterly cash dividend of US$0.11 per share, payable on July 18, 2019 to holders of record of Cypress’s common stock at the close of business on June 27, 2019. Regarding fabs, or wafer fabrication plants (chip factories), Rodgers was adamant that owning your own factory was the path to success in semiconductors. It is market leader in automotive and power semiconductors. If the acquisition goes through, that wouldn't be a terrible few-month-long return, not to mention one more $0.11 per share quarterly dividend that is likely to be paid out sometime in the fall. We’re motley! Find the latest INFINEON TECHNOLOGIES AG (IFNNY) stock quote, history, news and other vital information to help you with your stock trading and investing. From podcasts to Clubhouse, branded audio is more important than ever. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. (Reuters) - German chipmaker Infineon Technologies AG is nearing a deal to buy Cypress Semiconductor Corp, valuing the U.S. chipmaker at almost $10 billion, Bloomberg reported on Sunday. At the time of the acquisition, Cypress was valued at 18.2 times NTM EBITDA ( a measure of profitability). Date of Report (Date of the earliest event reported): June 25, 2019 . He said he liked corporations to set “big, hairy, audacious goals” so they could achieve higher results. He also set a personal goal of creating the best pinot noir in the world at his vineyard in the Santa Cruz Mountains. Infineon Technologies and Cypress Semiconductor have signed a definitive agreement under which Infineon will acquire Cypress for US$23.85 per share in cash . Infineon Technologies AG and Cypress Semiconductor Corporation today announced that the companies have signed a definitive agreement under which Infineon will acquire Cypress for US$23.85 per share in cash, corresponding to an enterprise value of €9.0 billion. ET by Neetha Mahadevan Infineon revenue up 7%; forecasts rise for 2014 Cypress stock was up 24% to $22.10 early Monday, while Infineon’s American depositary receipts were down 7.6% to $16.42 and its shares in Germany were down 8.7% to … Remember when Qualcomm (NASDAQ:QCOM) tried to buy Dutch chip specialist NXP Semiconductors (NASDAQ:NXPI), only to be stymied by the Chinese government (China is a primary market for the industry, thus giving regulators there a say on the matter)? Cypress Semiconductor will become part of Infineon Technologies AG Dear valued customer, We are excited and proud to announce that Cypress Semiconductor will become part of Infineon Technologies. Cypress was known for its larger-than-life founder, who said outrageous things like “real men have fabs” and was a smart and fiercely independent Libertarian. As of this writing, Cypress stock trades for $22.88, about 4% under Infineon's offer. Infineon profit, sales up, helped by strong dollar Jan. 29, 2015 at 2:07 a.m. Of course, there's always the chance for deals like this to fall through. SAN JOSE, Calif.,- April 7, 2020—Cypress Semiconductor Corp. (NASDAQ: CY) today announced that Infineon Technologies AG has obtained antitrust clearance from China’s State Administration for Market Regulation (“SAMR”) for Cypress' previously announced merger transaction with Infineon. Infineon Technologies has agreed to buy Cypress Semiconductor in a deal that values the chipmaker at $10 billion. Since many years, we have had a close partnership with Cypress and are now continuing the collaboration with Infineon. According to a report, Infineon … Cypress got a big return on that deal. However, as the close of 2019 gets closer, the deal closing date becomes more certain, and shares continue to near their $23.85 target, it will be time to part ways with Cypress Semiconductor. Data source: Cypress Semiconductor. Infineon to acquire Cypress, strengthening and accelerating its path of profitable growth. The San José-based company has become part of Infineon effective as of the Closing. The integration of Cypress is a major step for Infineon and a unique opportunity for our customers. Reorg M&A’s previous coverage of this transaction can be found HERE.--Matt Tracy But at the moment, sales look sluggish. We will offer the industry’s most comprehensive portfolio for linking the real with the digital world – comprising an unparalleled range of hardware, software and security solutions for the connected age. Investors can worry about the numbers if Infineon is shut out of a deal somehow. (That eventually proved to be wrong.). The first half of the year doesn't look great, except that the lost revenue is due to the company offloading part of its digital memory business to SK hynix system ic at the end of the first quarter. He is also the founder and president of Concinnus Financial, a Registered Investment Advisor based in Spokane, WA. Cypress expects to continue its quarterly cash dividend payments until the transaction closes. We laughed as he told tales of getting the Cypress staff to (voluntarily) pick his grapes. He stepped down in 2016 but remained an activist shareholder within the company. For now, though, there's the cash offer for $23.85 for each share of Cypress. This includes Cypress’s previously announced quarterly cash dividend of US$0.11 per share, payable on July 18, 2019 to holders of record of Cypress’s common stock at the close of business on June 27, 2019. I walked through his vineyard once, when it was equipped with some of the earliest IoT monitoring equipment. This deal indicates a continuation of the trend toward chip industry consolidation — which has swallowed many Silicon Valley companies, from Altera to NXP. Infineon is paying $23.85 per share in cash ($10 billion enterprise value, counting debt) in addition to continuing its dividend through closing. Infineon said it expected the deal, subject to regulatory approval, to close by the end of this or in early 2020. ... in connection with the proposed acquisition of Cypress Semiconductor Corporation (“Cypress”) by Infineon Technologies AG, a stock corporation ... 2019 merger announcement will not be eligible for the 50% acceleration at close. Cypress Semiconductor stock rose close to 24% to $22.07 on Monday, nearing an eight-year high after it received a buyout offer from Germany-based chipmaker Infineon Technologies AG … Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Cypress expects to continue its quarterly cash dividend payments until the transaction closes. Nicholas has been a writer for the Motley Fool since 2015, covering companies primarily in the consumer goods and technology sectors. German chipmaker Infineon Technologies AG is nearing a deal to buy Cypress Semiconductor Corp, valuing the U.S. chipmaker at almost $10 billion (7.90 billion pounds), Bloomberg reported on Sunday. Infineon Technologies AG agreed to buy Cypress Semiconductor Corp. for about $8.7 billion in cash, the latest mega-deal for an industry grappling with slowing growth. As of the close of regular trading on the Nasdaq exchange Friday, Cypress Semiconductor stock was $17.82 per share on a market cap of $6.51 billion, … This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. Cypress was founded in 1982 by T.J. Rodgers, a brilliant chip engineer who helped the startup gain recognition for making a wide variety of memory, sensor, and internet of things chips as it grew to include thousands of employees. Date 06/06/2019 ... payable on July 18, 2019 to holders of record of Cypress’s common stock at the close of business on June 27, 2019. In the 1980s and 1990s, Rodgers was known as the toughest boss in Silicon Valley, always holding executives and employees accountable. ... up-to-date … Stock Advisor launched in February of 2002. Pp = percentage point. Infineon has about 46,665 employees and is one of the ten largest semiconductor manufacturers worldwide. Infineon Technologies AG (IFX.XE) said Monday that it will acquire Cypress Semiconductor Corp. CY for an enterprise value of 9 billion euros ($10.1 billion). Above: T.J. Rodgers of Cypress Semiconductor. Infineon Technologies said on Tuesday that it had received final regulator clearance for its takeover of U.S. Cypress Semiconductor and that funding … Returns as of 03/09/2021. Market data powered by FactSet and Web Financial Group.

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