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Cypress proposes acquisition of Ramtron International

Posted: 13 Jun 2012     Print Version  Bookmark and Share

Keywords:acquisition  ferroelectric random access memories 

Cypress Semiconductor announced it has submitted a proposal to Ramtron International Corporation to acquire all the outstanding stock for Rs.129.84 ($2.48) per share, a 37 per cent premium to Ramtron's closing stock price on June 11, 2012.

The company also said it attempted to acquire Ramtron last year at Rs.157.59 ($3.01) per share, but the offer was rejected by Ramtron.

With about 35 million shares outstanding shares this would represent a purchase price of about Rs.450.26 crore ($86 million).

Ramtron supplies ferroelectric random access memories and works with Samsung Electronics, Texas Instruments and Toshiba Corp. as manufacturing partners. Ramtron has also allowed Texas Instruments to produce microcontrollers with embedded ferroelectric memory for use in low power applications. In the first quarter of 2012, Ramtron made a net profit of Rs.2.33 crore ($445,000) on sales revenue of Rs.78.53 crore ($15 million).

"We believe that our offer provides compelling value to Ramtron's stockholders," said T.J. Rodgers, president and CEO, Cypress.

"At this time, we call on Ramtron's board of directors to act in the best interests of its stockholders by meeting with us to seriously discuss our compelling proposal. We believe that Cypress would benefit Ramtron's customers, providing them with a more stable source of supply, greater research and development resources and better support from a much larger sales channel. We also believe the combination would provide Ramtron's employees with more opportunity for long-term success as part of a larger, more global organisation," Rodgers added.

Cypress has made public the text of letters sent to Ramtron by email on June 12, 2012 and letters sent on March 8, March 10 and April 11, 2011.

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