German chipmaker Infineon Technologies raised about 1.06 billion euros ($1.16 billion) by issuing new shares to partially finance its $10 billion acquisition of U.S.-based Cypress Semiconductor, it said on Tuesday.
Infineon said its share capital would be raised by about 4% after a private placement with institutional investors, adding that the shares were priced at 19.30 euros apiece.
The company closed the acquisition of Cypress Semiconductor in April, coupling its own prowess in managing electric drivetrains with Cypress’s superior connectivity in areas such as in-car entertainment.
Infineon said earlier this month that it expects sales to decrease by 5% in the fiscal year to Sept. 30 because of the impact of the coronavirus pandemic, compared with an original target of a 5% increase.
Infineon is a leading maker of power management chips used in electric drivetrains, exposing it to the sudden halt in car production that occurred because of the pandemic.
($1 = 0.9117 euros)