Cypress Semiconductor offers to buy Integrated Silicon Solution

Chipmaker Cypress Semiconductor Corp (CY.O) said it offered to buy Integrated Silicon Solution Inc (ISSI.O) for $19.75 per share in cash, trumping an offer by a Chinese consortium led by Summitview Capital.
Cypress's cash offer values Integrated Silicon Solution at $627.3 million, based on about 31.8 million shares outstanding as of May 1, according to Thomson Reuters data.
The offer is at a 5.4 percent premium to the stock's Wednesday close.
If the deal goes through, it will help Cypress continue to shift focus to automotive customers.
The company agreed to buy peer Spansion Inc for $1.59 billion in stock in December to help it shrug off weakness in the smartphone market.
Spansion's microcontroller chips are used for everything from controlling airbag deployment in cars to rolling down windows.
"Cypress bought Spansion partly due to an explosion in the automotive sector and ISSI has about half its revenue coming from automotive today," Craig Hallum analyst Richard Shannon told Reuters.
The Chinese consortium had agreed to buy Integrated Silicon for $19.25 per share in cash in March.
Integrated Silicon said in April that it would hold a special shareholder meeting on June 3 to consider the consortium's proposal.
Integrated Silicon Solution's shares rose 6.7 percent to $20 in after-market trading on Wednesday, while Cypress' shares rose nearly 2 percent to $12.89.


http://www.reuters.com/article/2015/05/13/us-integrated-silic-m-a-cypress-semicond-idUSKBN0NY2N020150513