German chipmaker Infineon is buying U.S.-based Cypress Semiconductor Corp. for more than $10 billion.
Infineon will pay $23.85 for each outstanding share of Cypress in the deal, which is expected to close late this year or early in 2020. The companies said the sale price represents a 46% premium to Cypress's share price over the past six weeks.
Infineon said Monday the acquisition will make it the eighth biggest chipmaker in the world and the leading supplier of chips to the automotive sector.
The companies expect cost synergies of 180 million euros ($201 million) per year by 2022.
Shares in the San Jose, California-based Cypress jumped more than 20% in premarket trading. The company, which specializes in wireless and USB technology, had $539 million in revenue in the first quarter.