Infineon to acquire Cypress: strengthening positions on the high-growth markets

What is the best option when we have German Infineon with its leadership in sensors and semiconductor market from the one hand, and the US-based Cypress with the rich portfolio of connectivity components, microcontrollers, and software from the other? Exactly, combining their power to enhance the world market of advanced solutions in automotive, Internet of Things, security and other fields. That is actually what they’ve done just recently: the companies signed an agreement after which Infineon is going to acquire Cypress for $23.85 per share in cash, estimated at the value of €9.0 billion.

It is difficult to exaggerate the benefits of the deal: having the Cypress’s know-how in connectivity and the Infineon expertise in security in collaboration is highly beneficial for developing sophisticating IoT applications, driver assistance systems, electric & battery-powered devices, electronic architectures in vehicles, power supplies and more. Moreover, this is a great chance to enlarge the capabilities for the customers not only from North America but also from the other important geographical areas aiming to achieve an economy of scale.

The companies are going to close the deal by the end of 2019 or at the beginning of 2020. If the deal closes, Infineon will likely become the world’s number one supplier of semiconductors for the automotive industry. Let’s follow the results of the acquisition together.