By The Associated Press
After a long pursuit, Cypress Semiconductor Corp. is buying Ramtron International Corp. in a deal that values the chip-maker at about $109.8 million.
The companies said Wednesday that Cypress raised its offer for Ramtron to $3.10 per share in cash. The boards of both companies approved the deal.
The final offer represents a 71 percent premium over Ramtron's closing stock price on June 11, the day before Cypress' interest in acquiring the company became public, and an 8 percent premium over Ramtron's ending price Tuesday.
San Jose, Calif.-based Cypress offered to buy Ramtron, based in Colorado Springs, Colo., for $2.48 per share in June, its second attempt to acquire Ramtron after a rejected bid last year. It then raised its offer to $2.68 per share later that month. In August it boosted the offer to $2.88 per share and launched a tender offer for the company's shares.
Ramtron's board rejected that offer, saying it was still too low and advising its shareholders not to tender their shares. On Wednesday, the company said that the higher bid from Cypress is in the best interest of its shareholders, customers and employees.
The acquisition price values Ramtrom at about $109.8 million, excluding debt, but includes Ramtron shares that Cypress already owns.
In morning trading, Ramtron shares rose 21 cents, or 7.3 percent, to $3.08, while Cypress shares added a penny to $12.59.
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