Cypress, Spansion Agree To $4 Billion All-stock Merger

Shares of Cypress Semiconductor Corp. and Spansion Inc. rallied in the extended session Monday after the companies announced a $4 billion stock merger. Cypress shares, which had been halted after the close, rose 3.4% to $10.78 on heavy volume, while Spansion shares rose 11% to $25.25 on heavy volume. Under the terms of the agreement, Spansion shareholders will get 2.457 Cypress shares for each Spansion share, and own 50% of the company. Each company will get four board seats and Cypress's T.J. Rodgers will serve as chief executive with Spansion's Ray Bingham serving as non-executive chairman. The deal, which was approved by the boards of both companies, is subject to regulatory approval and is expected to close in the first half of 2015. Cypress makes integrated circuits as well as touch screen technology, while Spansion makes flash memory chips.