In early June 2019, Infineon and Cypress signed an agreement under which Infineon will acquire Cypress. The acquisition enables Infineon to offer the industry's most comprehensive portfolio for connecting the real and digital worlds. In particular, the acquisition is expected to make Infineon a leading supplier of components to become a leading supplier of system solutions for automotive, industrial and the Internet of Things (IoT). In the future, customers will benefit from a greater global presence and extended design-in support tailored to their needs.
The transaction will initially be financed through a combination of existing liquidity and a credit facility provided by banks for acquisition purposes. Infineon will use proceeds from the 2019 share placement and the issuance of a hybrid bond totaling Euro 2.7 billion. The credit facility, which is divided among 20 international banks, will be used for the additional funds required for the transaction.
The lack of approvals from the various local and regional antitrust authorities had created tension in recent months and quarters. Recently, contradictory reports regarding the attitude of the US authority CFIUS had caused considerable market uncertainty.
The deal brings USB-C power controller technology to add to Infineon's discrete power business.