Cypress Semiconductor news concerning a deal with Infineon has CY stock soaring on Monday.
The deal between Cypress Semiconductor (NASDAQ:CY) and Infineon will have the latter acquiring the former. This will have the company purchasing all outstanding shares of CY stock for $23.85 each.
The Cypress Semiconductor news has Infineon offering a heavy premium for CY stock. The price of $23.85 per share represents a premium of 46% over the stock’s 30-day volume-weighted average price during the period from 15 April to 28 May 2019.
“Jointly, we will enable more secure, seamless connections, and provide more complete hardware and software sets to strengthen our customers’ products and technologies in their end markets,” Hassane El-Khoury, President and CEO of Cypress Semiconductor, said in a statement. “In addition, the strong fit of our two companies will bring enhanced opportunities for our customers and employees.”
The Cypress Semiconductor news about the deal also mentions how it will be handling future dividends. The company says that it will continue to pay out dividends to investors in CY stock until the deal reaches completion.
Cypress Semiconductor and Infineon are expecting the deal to close near the end of 2019, or in early 2020. However, it will first need approval from CY shareholders, as well as regulators. It will also need to complete customary closing conditions.
CY stock was up 24% as of Monday morning and is up 38% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.