Chipmaker Cypress buying flash memory device maker Spansion in all-stock deal worth $1.59B

Chip maker Cypress Semiconductor is buying flash memory product maker Spansion in an all-stock deal worth $1.59 billion.

Spansion stockholders will get 2.457 shares of Cypress stock for every Spansion share they own. Shareholders of each side will own about 50 percent of the new company, which will keep the name Cypress Semiconductor Corp.

The companies valued the deal at $4 billion. They expect it to close in the first half of 2015.

Cypress President and CEO T.J. Rodgers will be CEO of the combined company, which is expected to have $2 billion in annual revenue. Spansion Chairman Ray Bingham will be non-executive chairman.

Cypress shares rose 57 cents, or 5.5 percent, at $11 in aftermarket trading. Spansion Inc. shares jumped $2.45, or 10.7 percent, to $25.30.