The deal will cost the Boise Idaho company $1.27 billion but not in cash – it’s a share deal.
Micron will print 140 million common shares to Intel, ST Micro and Francisco Partners and will then issue another 10 million shares to Numonyx shareholders. Numonyx is a spin off from a joint venture between Intel and ST Microelectronics. Micron and Intel have a JV to make flash memory. It’s all rather complicated.
Steve Appleton, Micron’s CEO, claimed that buying Numonyx brought together two memory leaders.
The deal will be subject to regulatory review and we suspect the regulating authorities to take a keen interest in the deal, seeing as Intel is involved.