Infineon Technologies : announces final regulatory approval for acquisition of Cypress Semiconductor Corporation
April 07, 2020 at 04:43 am EDT
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Neubiberg, Germany - 7 April 2020 - Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) today announced that all necessary regulatory approvals have been received for its acquisition of Cypress Semiconductor Corporation (NASDAQ: CY). Infineon expects to close the transaction within five business days.
Beginning of June 2019, Infineon and Cypress announced that the companies had signed a definitive agreement under which Infineon would acquire Cypress. With the acquisition, Infineon will be able to offer the industry's most comprehensive portfolio for linking the real with the digital world and shaping digitalization. The company's path of profitable growth will be accelerated by evolving from a leader in components to a leader in system solutions for the automotive, industrial and Internet of Things (IoT) markets. Its customers can benefit from Infineon's increased global reach and enhanced design-in support tailored to their needs.
The transaction will initially be funded through a combination of cash on hand and a committed acquisition financing facility provided by banks. Infineon will use the proceeds from the share placement and the issuance of the hybrid bond in 2019, totaling 2.7bn EUR. In addition, the acquisition facility, which is syndicated among 20 international banks, will be drawn to pay the remainder of the transaction value. With maturities ranging from March 2022 until June 2024 for individual tranches, the acquisition facility provides ample time and flexibility for the long-term refinancing measures. The company will keep liquidity corresponding to its target level of 1bn EUR plus at least 10% of sales on its balance sheet.
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Infineon Technologies AG published this content on 07 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 April 2020 08:42:16 UTC
Infineon Technologies AG is one of the world's leading manufacturers of semiconductors. The group's products include power semiconductors, sensors, microcontrollers, digital, mixed-signal and analog ICs, discrete semiconductor modules, switches, interface ICs, motor-controlling ICs, RF power transistors, voltage regulators, and electronic safety components. Net sales break down by area of activity as follows:
- automotive (50.5%): semiconductor products used in the automotive industry, and memory products for specific applications for automotive, industrial, information technologies, telecommunications and consumer electronics.
- power & sensor systems (23.3%): semiconductors for energy-efficient power supplies, mobile devices, mobile phone network infrastructures, human-machine interaction as well as applications with special demands on their robustness and reliability.
- industrial power control (13.5%): semiconductor products for the conversion of electrical energy for small, medium and high-power applications, used in the manufacturing, the low-loss transmission, the storage and the efficient use of electrical energy;
- connected secure systems (12.6%): semiconductors for networked devices, card-based applications, and government documents; microcontrollers for industrial, entertainment, and household applications, components for connectivity systems, various customer support systems;
- other (0.1%).
Net sales are distributed geographically as follows: Germany (12.4%), Europe/Middle East/Africa (14.4%), China/Hong Kong/Taiwan (32.3%), Japan (10.5%), Asia/Pacific (15.9%), the United States (12.1%) and Americas (2.4%).