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IFX - Infineon Technologies AG News Story

€32.37 1.0  3.2%

Last Trade - 4:26pm

Large Cap
Market Cap £35.46bn
Enterprise Value £38.70bn
Revenue £8.68bn
Position in Universe 37th / 1051

BREAKINGVIEWS-Transatlantic $10 bln chip deal does not compute

Mon 3rd June, 2019 10:42am
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.) By Liam Proud LONDON, June 3 (Reuters Breakingviews) - Germany’s Infineon is paying a premium of almost 50% to buy U.S.-based Cypress Semiconductor. CEO Reinhard Ploss has given few details on how he will hit ambitious long-term revenue targets. Given the deal’s success hinges on hitting these goals, the price looks too high. Full view will be published shortly. On Twitter CONTEXT NEWS - Infineon Technologies said on June 3 it had agreed to buy U.S. microchip peer Cypress Semiconductor for 9 billion euros including debt. - The German buyer said its cash offer of $23.85 per share was 46% above Cypress' volume-weighted average price between April 15 and May 28, the last trading day before reports of a potential sale. - Infineon intends to finance about 30% of the total transaction value with equity and the remainder with debt and existing cash. Infineon expects to keep its investment grade credit rating after the deal, Chief Financial Officer Sven Schneider said. - The deal will lead to cost savings of 180 million euros per year by 2022 and revenue synergies of more than 1.5 billion euros in the long term, Infineon said. - Infineon shares were down 5.3% to 15.24 euros at 0803 GMT on June 3. - For previous columns by the author, Reuters customers can click on PROUD/ - SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Infineon to buy Cypress Semiconductors in $10 billion deal*:nL8N23A0LS Infineon statement ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Swaha Pattanaik and Bob Cervi) ((; Reuters Messaging:
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