Wednesday, February 10, 2010
Micron Technology said they have signed a definitive agreement to acquire privately held Numonyx in an all-stock transaction valuing Numonyx at approximately US$1.27 billion.
Under the terms of the agreement, Micron will issue 140 million Micron common shares to Numonyx shareholders - Intel, STMicroelectronics and Francisco Partners. Up to 10 million additional Micron common shares will be issued ratably to Numonyx shareholders to the extent the volume weighted average price of Micron shares for the 20 trading days, ending two days prior to the close of the transaction, ranges between US$7.00 and US$9.00 per share.
The transaction will allow Micron to provide a broad portfolio of DRAM, NAND and NOR memory products, and also gain access to Numonyx' customer base in the embedded and mobile markets.
Micron currently estimates that the transaction would be accretive to the company on both free-cash flow and non-GAAP earnings beginning fiscal year 2011. In addition, it is anticipated that the Numonyx balance sheet will be debt-free following closing.
The transaction is subject to regulatory review and other customary closing conditions and is currently anticipated to close within three to six months.
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