Will Cypress Pick Up Ramtron's FRAM Technology On The Cheap?
Global Technology Management Group, LLC. (GTechMG) has released the "Cypress FRAM White Paper," outlining how Cypress will exploit FRAM technology.
Since a third tender offer of $2.88 per share in cash, Cypress Semiconductor Corporation is moving closer to the acquisition of FRAM innovator, Ramtron International Corporation.
In July, GTechMG released the "Ramtron Valuation Report," that set a minimum valuation for Ramtron. Now the firm has issued freely downloadable publication, "Cypress FRAM White Paper", which shifts the focus away from Ramtron to Cypress as it projects revenues and profits that Cypress is anticipated to realise from Ramtron's FRAM assets.
"We believe that Cypress will realise annual revenues of at least $150 million based on current FRAM products within 3 years of its purchase of Ramtron' stated Tim Sullivan, Managing Partner of Global Technology Management Group, LLC. Our expectation is that future revenues from current FRAM products represent only a portion of total revenues Cypress will generate with FRAM technology", said Sullivan.
"The real driving force behind the acquisition of Ramtron is not current FRAM products; Cypress needs FRAM technology to replace its aging SONOS technology within Programmable System-on-Chip (PSoC) products. We anticipate Cypress will release new FRAM based PSoC devices that will generate $500 million in annual revenues within a decade. Cypress will capitalise on the value of FRAM technology in ways that have eluded Ramtron." forecasted Mr. Sullivan.
On Wednesday August 29th, GTechMG is releasing a new report, "Cypress Realizes the Promise of FRAM Technology". This report expands on the "Cypress FRAM White Paper" with additional depth and details. This "Cypress Realizes the Promise of FRAM Technology" report sells for $395 for a single-user license and $700 for a corporate license.
There is a substantial gap between Cypress' current $2.88 per share Tender Offer for Ramtron and the value of future profits that Cypress will derive from FRAM technology. GTechMG's Ramtron Valuation Report sets the minimum value for Ramtron at 2 to 2.5 times the initial Cypress $95 million Tender Offer. The value of future Cypress FRAM based product sales can easily justify the acquisition of Ramtron at a price that provides shareholders with fair value for their ownership interests.
GTechMG's Ramtron Valuation Report is a fully independent third-party assessment of Ramtron's minimum value that is needed by any and all parties that refuse to sell their shares at Cypress' Tender Offer price.
GTechMG's says feedback on the report has been overwhelming positive and that constructive criticism of it has been limited to tax treatment of some items.
The firm also says readers validate the conclusion that Ramtron's minimum value is much greater then Cypress' offer.
