Infineon has agreed to buy Cypress Semiconductors in a deal that values the U.S....
FRANKFURT - Infineon has agreed to buy Cypress Semiconductors in a deal that values the U.S. maker of microchips used in cars and electronic devices at 9 billion euros including debt, sending shares in the German company lower on concerns over the cost.
That equates to a multiple of 4.5 times sales at San Jose, California-based Cypress. “It’s a proud price, no doubt,” said Infineon CEO Reinhard Ploss. Infineon was among the few companies in a sector facing headwinds that could finance a deal that in more prosperous times might have been out of its reach, veteran CEO Ploss said.
Infineon shares traded at 15.01 euros in Frankfurt, representing a fall of nearly 30% since they peaked in April, to value the business at 17 billion euros. The acquisition follows a quiet few years in semiconductor M&A, which peaked at $107 billion in 2015 before as deals were derailed, such as Qualcomm’s $39 billion proposed purchase of NXP.
The company played down concerns that it might fall foul of CFIUS, the U.S. panel that reviews whether deals might compromise national security, saying that Cypress’s focus on automotive products meant its products were not sensitive.
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