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Infineon Raises 1.5Bn Euros for Cypress Acquisition Deal

Infineon Technologies said lately that the company is rolling out an accelerated capital increase to raise 1.5 billion euros (US$1.68 billion) towards the cost of its planned acquisition of Cypress Semiconductor.

Infineon

The German chipmaker said in a statement that the offering of new shares, by way of a private placement to institutional investors, would increase its share capital by 10per cent.

The 113 million new shares were placed in less than two hours.

Infineon said on June 3 it had agreed to buy Silicon Valley-based Cypress for $10 billion, paying a 46% premium to expand into next-generation autos and Internet technologies.

“Infineon said it will equity finance about 30% of the … deal. So another at least 1.15 billion euro measure is still open,” a Frankfurt-based trader said. “We think investors would have preferred that Infineon secures financing in one stop, now hangover will weigh on shares.”

Infineon Technologies and Cypress Semiconductor Corporation announced that the companies have signed a definitive agreement under which Infineon will acquire Cypress for US$23.85 per share in cash, corresponding to an enterprise value of €9.0 billion.

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Niloy Banerjee

A generic movie-buff, passionate and professional with print journalism, serving editorial verticals on Technical and B2B segments, crude rover and writer on business happenings, spare time playing physical and digital forms of games; a love with philosophy is perennial as trying to archive pebbles from the ocean of literature. Lastly, a connoisseur in making and eating palatable cuisines.

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