Cypress increases offer to acquire Integrated Silicon Solution Inc
Cypress Semiconductor Corp said late Friday that it has increased its offer to acquire Integrated Silicon Solution Inc (ISSI) to $20.25 per share in cash.
The offer beats that of the consortium of Chinese investors, including Summitview Capital.
Earlier today ISSI said that it entered into an amendment to its merger agreement with the Chinese private equity consortium, under which the merger consideration was increased to $20.00 per share from the $19.25 per share agreed in March.
However, it didn’t take long for Cypress to make a higher offer.
Cypress wrote in a letter:
“Given that our proposal is financially superior, has significantly less closing risk than the consortium’s proposal (e.g., CFIUS, Taiwan divestitures), and has no financing risk or conditions, Cypress asks that your board of directors immediately determine that the terms of the attached Merger Agreement constitute a “Superior Proposal” under the terms of the Agreement and Plan of Merger, dated March 12, 2015, by and between ISSI and Uphill Investment Co.,”
Cypress said on Friday that “we must express frustration as to the slow pace at which we were given access to the data room as well as the slow pace at which documents were posted.”
ISSI designs, develops, and markets high performance integrated circuits for the following markets: automotive, communications, digital consumer, and industrial and medical. Its primary products are high speed and low power SRAM and low and medium density DRAM. The company operates in the US, Europe and Asia.
On April 29, ISSI reported second quarter revenue of $80.1 million, compared to $80.9 million in the first fiscal quarter of 2015 and $80.9 million in the second fiscal quarter of 2014.
The company did not provide provide financial guidance “due to the pending acquisition.”