Infineon Gets Final Regulatory Approval for Cypress Acquisition
Infineon Technologies AG announced that all necessary regulatory approvals have been received for its acquisition of Cypress Semiconductor Corporation. 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. At the time of the original announcement, Reinhard Ploss, Infineon's CEO called the acquisition a "landmark step in Infineon's strategic development. We will be able to offer our customers the most comprehensive portfolio for linking the real with the digital world."
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 €2.7 billion.
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 €1 billion plus at least 10% of sales on its balance sheet.