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IFX - Infineon Technologies AG News Story

€32.5 1.1  3.6%

Last Trade - 07/05/21

Large Cap
Market Cap £36.82bn
Enterprise Value £40.06bn
Revenue £8.70bn
Position in Universe 35th / 1050

UPDATE 1-Infineon to buy Cypress Semiconductors in 9 billion euro deal

Mon 3rd June, 2019 6:58am
* Infineon offers $23.85 per share in cash, 46% premium
    * Acquisition to strengthen structural growth drivers    
    * Annual cost synergies of 180 million euros by 2022
    * Infineon shares indicated 2% lower 

 (Adds margin targets, background)
    FRANKFURT, June 3 (Reuters) - Infineon  IFXGn.DE  has agreed
to buy Cypress Semiconductors  CY.O  in a deal valuing the U.S.
maker of microchips used in cars and electronic devices at 9
billion euros ($10.1 billion), including debt, the German
company said on Monday. 
    The cash offer of $23.85 per share represents a 46% premium
to Cypress' share price over the last month, the German maker of
power-management chips used in cars, smartphones and wind
turbines said.
    "With the addition of Cypress, Infineon will consequently
strengthen its focus on structural growth drivers and serve a
broader range of applications," it added.
    Infineon shares were indicated to drop 2%.
    The acquisition will reap cost synergies of 180 million
euros per year by 2022 and revenue synergies of more than 1.5
billion euros in the long term, Infineon said.
    Once Cypress Semiconductors has been integrated, Infineon
targets through-cycle revenue growth of 9% or more and a segment
result margin of 19 percent. The investment-to-sales ratio is
targeted to decrease to 13 percent.
    The Germany chipmaker added that it intends to finance about
30% of total transaction value with equity and remainder with
debt as well as cash on hand.
    The Board of Directors of Cypress and the Infineon
Supervisory Board have already consented to the acquisition,
which is expected to close in late 2019 or in early 2020.
($1 = 0.8947 euros)

 (Reporting by Arno Schuetze; Editing by Riham Alkousaa and
Stephen Coates)
 ((; +49.69.7565.1197; Reuters
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