Cypress Semiconductor Corp. and Ramtron International will merge in a $109.8 million agreement.
The merger ends a months-long courtship of the Springs-based Ramtron by Cypress, which is headquartered in San Jose, Calif. Three earlier offers by Cypress were rejected by Ramtron’s board because they were considered too low.
The deal will be structured as a cash tender offer for all the outstanding shares of Ramtron common stock. Cypress will pay $3.10 a share in cash. Ramtron’s stock was selling at $1.81 a share in June.
“We are pleased to have reached an agreement with Ramtron,” said T.J. Rodgers, president and CEO of Cypress. “Ramtron and its employees have done an impressive job building a valuable technology base, providing the market with a full portfolio of innovative, low-power, nonvolatile memory solutions.”
Ramrtron’s technology will complement Cypress’s business, research and development resources and strong manufacturing capabilities, Rodgers said.
The Ramtron board held out for the better offer in order to make sure stockholders realized the full value of the company’s long-term growth prospects, said Dr. William G. Howard, Ramtron chairman.
The company designs, develops and markets specialized semiconductor memory and integrated semiconductor solutions used in a wide range of product applications and markets.
Ramtron was founded in 1984 as a research and development company to develop ferroelectric technology for use in semiconductor memories. The company pioneered the first nonvolatile ferroelectric random access memory chip, opening the way for advances in the electronics industry.
A fabless design company, Ramtron outsources manufacture to other U.S. locations, speeding the time to market. The company has six locations worldwide, including an office in Europe and Canada.
Cypress has 3,500 employees and is worth $995 million, according to the company’s website. It is a manufacturer of USB controllers, high-performance memories and programmable timing devices. It serves consumer, mobile handsets, data communications, automotive and military industries.