Returns as of 07/31/2020.Cypress' gross and operating margins have been battered by macro headwinds, especially in the automotive and industrial markets, over the past year.Cypress didn't offer any guidance last quarter in anticipation of Infineon closing the deal, but analysts previously expected its revenue and earnings to rise 6% and 13%, respectively, this year, as demand from the auto and IoT markets stabilized.
International politics can still spoil this deal, but there's no particular reason to believe that the merger will fail at this point.
Infineon derives a third of its sales from China, according to data compiled by Bloomberg. German chip maker Infineon Technologies AG agreed to national security concessions to resolve U.S. concerns about its takeover of Cypress Semiconductor Corp., according to … Information regarding certain of these persons and their beneficial ownership of Cypress’ common stock is also set forth in Cypress’ definitive proxy statement on Schedule 14A for its 2019 annual meeting of stockholders filed on March 15, 2019 with the SEC, which can be obtained free of charge from the sources indicated above. Infineon Technologies AG (IFX.XE) said Monday that it will acquire Cypress Semiconductor Corp. CY for an enterprise value of 9 billion euros ($10.1 billion). San Jose, California-based Cypress designs and manufactures semiconductor products for the defense industry.
Contains six flavors not found in nature. U.S. national security officials have recommended that President Donald Trump block German chipmaker Infineon Technologies AG's proposed $10 billion deal to buy Cypress … That pressure will likely continue as the coronavirus outbreak, China's economic slowdown, and other headwinds throttle demand for its chips.That track record indicates that Infineon's bid could be doomed, but did investors overreact by selling their shares of Cypress? The stock’s 52-week range is $14.42 to $23.55. However, management did provide some new detail on how the buyout process is working out.Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Cypress Semiconductor stock rose close to 24% to $22.07 on Monday, nearing an eight-year high after it received a buyout offer from Germany-based chipmaker Infineon Technologies AG for $10.06 billion. Cypress Semiconductor Takes One Last Bow on the Earnings Stage Sales and earnings are trending way lower as the chip designer inches closer to completing a merger with Infineon. We will strengthen and accelerate our profitable growth and put our business on a broader basis. The deal is expected to close by the end of this year or early 2020.Reinhard Ploss, chief executive of Infineon, said: "The planned acquisition of Cypress is a landmark step in Infineon's strategic development. "Infineon expects cost synergies from the deal of EUR180 million per year by 2022 and more than EUR1.5 billion annual revenue synergies in the long term.Cypress expects to continue its quarterly cash dividend payments until the transaction closes.The German company said the price, which is equal to $23.85 per Cypress share, represents a 46% premium to Cypress's unaffected 30-day volume-weighted average price during the period from April 15 to May 28.It’s pretty clear there’s at least a bit of animosity between two of the richest men in the world. However, a large portion of those chips are likely installed in products for multinational OEMs assembled in China instead of Chinese hardware.The MCD unit generated 72% of Cypress' revenue last quarter, and the MPD unit accounted for the remaining 28%. "For Cypress shareholders, the combination of continued dividends through closing plus the $23.85 cash price represents significant value creation. The Cypress deal would catapult Infineon into the top 10 of global chipmakers based on sales. Let's see how Cypress is doing as a stand-alone company, and whether or not its sell-off represents a buying opportunity for long-term investors.Cypress sells a large portion of its chips to automotive and IoT (Internet of Things) customers, which accounted for 39% and 40% of its revenue last quarter.