Deal expected to cut annual costs by $135 million within three years.
NEW YORK — Chip maker Cypress Semiconductor is buying flash memory product maker Spansion in an all-stock deal worth $1.59 billion.
The companies valued the deal at $4 billion. They expect it to close in the first half of 2015, and said the deal will cut annual costs by $135 million within three years.
Cypress President and CEO T.J. Rodgers will be CEO of the combined company, which is expected to have $2 billion in annual revenue. Spansion Chairman Ray Bingham will be non-executive chairman.
Spansion is based in Sunnyvale, California, and it had $972 million in revenue in 2013. The company filed for Chapter 11 bankruptcy protection in early 2009 as the global economic slump hurt electronics sales, but it reorganized and its shares were listed on the New York Stock Exchange again in mid-2010.
Cypress is based in San Jose, California, and it had $723 million in revenue in 2013.
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