NEW YORK (TheStreet) -- Shares of Cypress Semiconductor (CY) were gaining 4.3% to $13.14 Wednesday following the announcement that Integrated Silicon Solution (ISSI) agreed to merger terms with the chipmaker.
Shares of Integrated Silicon were falling 0.2% to $20.40.
Cypress will acquire ISSI for $20.25 a share in cash. Cypress said it will "use its reasonable best efforts" to obtain approval for the merger, including full divesting all of ISSI's SRAM approval.
Earlier in the week ISSI said it couldn't reach an agreement with Cypress because the latter company was unwilling to take steps to get antitrust clearance.
Cypress raised its offer to acquire ISSI in May to $643 million to outbid a group of investors led by Uphill Investment. ISSI determined the Cypress offer would "be more favorable from a financial point of view to the ISSI stockholders than the merger under the Uphill Agreement."
TheStreet Ratings team rates CYPRESS SEMICONDUCTOR CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CYPRESS SEMICONDUCTOR CORP (CY) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow."