The transaction will be structured as a cash tender offer for all of the outstanding shares of Simtek common stock and is subject to customary closing conditions, including regulatory approvals. The transaction is expected to close in or prior to the fourth calendar quarter of 2008.
Simtek's nvSRAMs provide the high-speed memory access of standard SRAMs (with a 15nsec access time), but retain data when power is turned off - a feature critical to applications where secure data storage is essential.
This combination of features makes the devices suitable for applications requiring critical data retention under almost any operating conditions, such as RAID (Redundant Array of Independent Disks) data storage, industrial controls, military and avionics, medical patient monitoring and automotive systems.
Cypress currently holds approximately four per cent of Simtek's outstanding common stock and has been marketing and licensing Simtek's technology since engaging in a joint product development agreement with the company in March 2006.
Ahmad Chatila, executive vice-president of Cypress' memory and imaging division, said: 'We are looking to integrate this technology into many of our products, including our PSoC Programmable System-on-Chip, providing an integrated control and power failure solution for complex analog and digital systems.'