Long time semiconductor makers, Cypress Semiconductor and Spansion, have entered into an agreement to merge in a transaction valued at approximately $4 billion. According to a statement by both companies, the post-merger company will be well poised to tap into the automotive, industrial, and the Internet of things embedded systems, driving an estimated revenue of $2 billion. The merger is expected to achieve more than $135 million in cost synergies on an annualized basis within three years.
Rodgers, Cypress's Founding President and CEO
This merger represents the combination of two smart, profitable, passionately entrepreneurial companies that are No. 1 in their respective memory markets and have successfully diversified into embedded processing. Our combined company will be a leading provider of embedded MCUs and specialized memories. We will also have extraordinary opportunities for EPS accretion due to the synergy in virtually every area of our enterprises.
John Kispert, CEO of Spansion
Bringing together these high-performing organizations creates operating efficiencies and economies of scale, and will deliver maximum value for our shareholders, new opportunities for employees and an improved experience for our customers. With unparalleled expertise, global reach in markets like Japan and market-leading products for automotive, IoT, industrial and communications markets, the new company is well positioned to deliver best-of-breed solutions and execute on our long-term vision of adding value through embedded system-on-chip solutions.