Cypress, Ramtron agree on merger terms

Cypress Semiconductor Corporation announced that it has reached a definitive merger agreement with and Ramtron International Corporation as it seeks to establish and fortify its non-volatile memory business.

Under terms unanimously approved by Ramtron's board of directors, Cypress will acquire all outstanding stock at a price of $3.10 per share in cash. The transaction, valued at approximately $109.8 million, excluding assumed debt and options and including shares previously acquired by Cypress, represents a premium of 71 per cent to Ramtron's closing price of $1.81 per share back in June.

"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. We look forward to working with Ramtron to complete the transaction quickly, enabling a seamless transition for customers and business partners once the transaction is complete," said T.J. Rodgers, President and Chief Executive Officer of Cypress.