The German company Infineon said that they planned to purchase Cypress Semiconductors in an agreement having worth of the United States chipmaker at nine billion euros ($10.06 billion) together with debt. Infineon said that per share the cash offer of $23.85% signifies a 46 percent premium to share price of Cypress from the last month.

By the year 2022, Infineon is aiming to cost synergies of 180m euros per year and revenue synergies of over 1.5 billion euros for the long term. The chipmaker of Germany further added that it expects to finance about thirty percent of the overall transaction value with justice and balance with debt along with cash on hand.

Moreover, the share price of Infineon fell about 6.5% on the start of the week to the Stoxx 600 bottom as investors responded to the deal. However, the Chief Financial Officer of Infineon, Sven Schneider stated that the revenue synergies and the cost meant the transaction makes lots of sense.

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Meanwhile, in pre-market trade, the shares of Cypress soared 27%. Schneider also mentioned that Infineon paid about 4.5 times revenue for Cypress and claimed that it relates to the current revenue multiples incomparable deals inside the industry of semiconductor.

Furthermore, Schneider said that the collaboration of two firms might build up the relation among the digital and real world. It added, the new Infineon might the worldwide eighth largest semiconductor organization and is aiming ten billion euros per year in revenue.