Cypress, Spansion Complete Merger

(RTTNews) - Programmable chip maker Cypress Semiconductor Corp. (CY) and memory chip maker Spansion, Inc. (CODE) said Thursday that they have closed the merger of the two companies in an all-stock, tax-free deal valued at about $5 billion.

In a special meeting earlier Thursday, Cypress shareholders approved the issuance of 2.457 shares of Cypress stock to Spansion shareholders for each Spansion share they own. Spansion shareholders approved the merger in a separate special meeting.

The merger, which was originally announced in December, is expected to achieve more than $135 million in cost synergies on an annualized basis within three years and to be accretive to adjusted earnings within the first full year after the deal closes.

The combined company will continue to pay $0.11 per share in quarterly dividends to shareholders.