Micron Technology Inc has signed an agreement to sell a majority interest in its CMOS imaging solutions business, Aptina Imaging Corp, to private equity firms Riverwood Capital and TPG Capital.

Micron said it would retain a 35 percent minority stake in Aptina, which will operate as a privately held company. The two private equity firms that will hold the majority stake are Riverwood Capital and TPG Capital. The transaction is expected to be completed in the next 60 days, Micron said.

Micron said it expects to record a loss of about $100 million in the fourth quarter of its fiscal year in connection with the sale. Micron said it would continue to manufacture products and provide services for Aptina at its worldwide facilities.

As reported, Micron has been seeking to spin out Aptina in a private equity deal for months. The unit was turned into an independent operation in recent times and has operated as a wholly owned subsidiary of Micron under the Aptina name since October 2008.

Like all memory chip vendors, Micron has been badly hurt by the ongoing downturn. The company has implemented several rounds of cost cuts, including layoffs, salary reductions and fab closures.

But Micron also recently moved into the microdisplay panel market through the acquisition of Longmont, Colo.-based Displaytech Inc. Abid Ahmad, director of Micron's silicon and systems group, said the company was seeking into move into more system-level products where it could leverage the firm's experience in semiconductor research and design.

Micron established the imaging business eight years ago. The unit laid claim to developing the first 2.2-micron pixel architecture, 1.75-micron pixel architecture and 1.4-micron pixel architecture. The unit has shipped more than 1 billion units all told, according to Micron.

"An independent Aptina will attract world-class talent, and given its strong, debt-free balance sheet, Aptina is well positioned to pursue consolidation and other growth opportunities that will further its leadership in CMOS imaging," said John Marren, a partner at TPG, in a statement.

Aptina's financials will no longer be consolidated in Micron's financial statements, the company said.

By: DocMemory
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