German chipmaker Infineon to buy Cypress for $10 billion

MADRID – German chipmaker Infineon is buying U.S.-based Cypress Semiconductor Corp. for more than $10 billion.

Infineon will pay $23.85 for each outstanding share of Cypress in the deal, which is expected to close late this year or early in 2020. The companies said the sale price represents a 46% premium to Cypress’s share price over the past six weeks.

Infineon said Monday the acquisition will make it the eighth-largest chipmaker in the world and the leading supplier of chips to the automotive sector.

The companies expect cost synergies o$201 million per year by 2022.

Shares in the San Jose, California-based Cypress jumped more than 20% in premarket trading. The company, which specializes in wireless and USB technology, had $539 million in revenue in the first quarter.