Micron said it would issue 0.5625 share for each Lexar share. That put the purchase price at $688 million, or $8.43 per share, a premium of 19 percent based on Micron's Tuesday closing market price of $14.98.

Micron said it would exchange Lexar's 81.6 million shares outstanding and issue additional stock upon the exercise of assumed options.

The company has tried to reduce its reliance on the volatile market for computer memory, known as dynamic random access memory, or DRAM, by broadening its product line to include flash memory chips found in digital music players as well as image sensors found in cameras and cellphones.

Micron said the acquisition of Lexar would strengthen its position in the market for NAND flash memory.

By: DocMemory
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