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Cypress and Ramtron finally agree to a deal

Posted: 21 Sep 2012 ?? ?Print Version ?Bookmark and Share

Keywords:ferroelectric RAM? discrete memories? nvSRAM?

After several rejected offers, Cypress Semiconductor Corp has finally acquired Ramtron International Corp. for $3.10 per share in cash. Excluding assumed debt and options, the deal is valued at approximately $109.8 million.

Cypress has long coveted Ramtron, which develops ferroelectric RAM (FRAM) technology used in discrete memories or as embedded non-volatile memory, and has been repeatedly rejected in its multiple bids to acquire them.

In June, Cypress revealed it had attempted to buy Ramtron in March 2011 at $3.01 per share. The agreed price of $3.10 represents a premium of 71 per cent to Ramtron's closing price of $1.81 per share on June 11, the day before Cypress publicly disclosed its offer for Ramtron. Subject to customary closing conditions, the transaction is expected to close by the end of the calendar year.

"The combination of Ramtron's FRAM technology with Cypress's nvSRAM business, considerable R&D resources, historically strong manufacturing capabilities, global sales organisation, and deep extension into distribution channels will create a significant new entity in the nonvolatile memory business," said T.J. Rodgers, Cypress president and CEO, in a statement.

"Through the strategic alternative review process, the Ramtron board sought to determine a course of action that would enable Ramtron stockholders to fully realise the value inherent in the long-term growth prospects of the company. Ultimately, the board concluded that a combination with Cypress accomplishes that objective, and believes the transaction represents a positive outcome for Ramtron stockholders, customers, partners and employees," said William Howard, Ramtron chairman, in the same statement.

- Peter Clarke
??EE Times

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