Infineon has agreed to buy Cypress Semiconductor in a deal that values the chip maker at $10 billion.
Infineon Technologies is paying $23.85 per share in cash ($10 billion enterprise value) in addition to continuing its dividend through closing. That’s 55 percent higher than the stock price was last week before news started to leak.
The stock price represnts an-all time high for Cypress, and it’s a nice way for a legendary Silicon Valley to go out in style. The company was valued at 18.2 times NTM EBITDA ( a measure of profitability).
The companies expect the transaction to close by the end of calendar year 2019 or early 2020.