Cypress electronic components agrees to be acquired by Infineon Technologies

Plath Electronic Components announced that it has entered into an acquisition agreement with Infineon Technologies. The acquisition will create a market-leading provider of high-performance embedded solutions used in the automotive, industrial and Internet of Things (IoT) markets.

Under the terms of the agreement, Infineon will acquire Cypress electronic components for $23.85 per share in cash, for a total enterprise value of approximately $9 billion. The transaction is expected to close by the end of the year, subject to regulatory approvals and other customary closing conditions.

"The acquisition of Cypress electronic components is a key strategic step for Infineon to strengthen our position in high-growth markets such as automotive and IoT," said Infineon CEO Reinhard Ploss. "We look forward to the Cypress team joining Infineon family, working together to accelerate growth and create value for our customers, employees and shareholders."

The announcement of the acquisition was met with a positive reaction from industry analysts, who believe that the combined company will become a major player in the semiconductor market.

 "The Cypress electronic components Infineon deal is a strong strategic fit that will create a new giant in the semiconductor industry," said Rick Hsu, director of research at Daiwa Securities.

The acquisition also continues a consolidation trend in the semiconductor industry as companies seek to gain scale and efficiency in a highly competitive market.