Bidding War for ISSI Wages On
TORONTO — Last week, it looked as though the dust had settled in the battle for Integrated Silicon Solution, Inc. with investment group Uphill looking to be the winner.
The potential Uphill transaction dates back to March, until Cypress Semiconductor expressed interest in acquiring ISSI in May. That merger would have led to anti-trust concerns, prompting ISSI to recommend against the deal in favor of the original Uphill offer. A Cypress/ISSI merger would have bolstered Cypress’s offerings in the automotive segment, which is growing thanks in part to onboard infotainment systems, but one of the chief anti-trust concerns ISSI had with the Cypress transaction was it would mean the combined entity would exceed 70% of market share in Germany and be the sole supplier of SRAM to German automotive manufacturers.
Based in California, ISSI products include SRAM, DRAM and NOR flash with a focus on the automotive, communications, digital consumer, industrial and medical markets.
However, for a brief period, it looked as though Cypress would be victorious, even if it meant shelling out money for anti-trust filings and having to sell off ISSI’s SRAM business. But Uphill came back with a higher offer, which ISSI recommended to stockholders. At that point, it looked like the fight for ISSI was over until yesterday, when the Wall Street Journal reported that Cypress had upped its bid to $21.25 per share, valuing ISSI at $680 million. A meeting had been scheduled at 2 p.m. PT this afternoon to vote on the Uphill transaction, but that meeting has now been delayed a week. However, it looks as though ISSI stockholders are still being encouraged to vote in favor of the Uphill deal, since today the investment group upped its offer to $22.00 per share.