STMicroelectronics Announces an Agreement for the Combination of Numonyx into Micron Technology, Inc.
GENEVA, February 09, 2010 –STMicroelectronics (NYSE: STM) today announced that, together with its partners Intel Corporation and Francisco Partners, it has entered into a definitive agreement with Micron Technology Inc., in which Micron will acquire Numonyx Holding B.V. in an all-stock transaction. The Flash memory joint venture was created by the partners on March 30, 2008.
The transaction (*) offers the opportunity to Numonyx to combine its strengths with those of Micron, a global leader in the memory business. It ensures sustainable continuity to customers and employees of what had been, before the creation of Numonyx, ST's Flash memory business, and it opens a short-term path to liquidity for ST's equity investment.
Micron/Numonyx' center of excellence for technology and product development of NOR, stacked NOR and Phase Change Memories for wireless and embedded applications will be based in Italy. Additionally, after the closing, Micron/Numonyx and ST will continue to share the R2 facility in Agrate, Italy, for technology R&D and manufacturing activities.
Pursuant to the terms of the transaction, at closing Micron will issue to Numonyx' three shareholders an aggregate of 140 million shares of Micron common stock, plus up to 10 million additional shares if the volume weighted average price of Micron's common stock for the 20 trading days, ending two days prior to closing, is lower than $9.00 per share. Micron shares will be held by ST as a financial investment.
Based on Micron's current trading price of $9.08 per share, ST will receive - in exchange for its 48.6% stake in Numonyx and the cancellation of the 30-year note due to ST by Numonyx – approximately 66.6 million shares of Micron common stock (taking into account a payable of $77.8 million due by ST to Francisco Partners) and the transfer of the M6 industrial facility in Catania, Italy. As already announced, ST plans to contribute the M6 facility to the new photovoltaic joint initiative among Enel, Sharp and ST.
Also at closing, Numonyx will redeem the full amount of its outstanding $450 million term loan, while simultaneously terminating the guarantee of the $225 million debt issued by ST. Based on the current Micron trading price of $9.08 per share, the value of the Micron shares allocated to ST, net of the payable to Francisco Partners, would be approximately $527 million and the overall consideration would result, at the closing, in a gain for ST of about $280 million.
"The exit from the Flash memory business, including the termination of our exposure to the guaranteed debt, is a further step in executing our strategy towards a focused and less capital-intensive business model," commented Carlo Ferro, Executive Vice-President and Chief Financial Officer of STMicroelectronics. "We are pleased with these achievements, including the path to liquidity for our investments upon the closing of the deal announced today, which combines the Numonyx business with Micron into a sustainable leader of the world's memory industry."
"With its significant and valuable contribution in NOR and Phase Change Memories for wireless and embedded businesses, I am confident that the former ST/Flash Memory organization will become an important part of a global and successful leader in the memory industry," concluded Carlo Bozotti, President and Chief Executive Officer of STMicroelectronics.
About STMicroelectronics
STMicroelectronics is a global leader serving customers across the spectrum of electronics applications with innovative semiconductor solutions. ST aims to be the undisputed leader in multimedia convergence and power applications leveraging its vast array of technologies, design expertise and combination of intellectual property portfolio, strategic partnerships and manufacturing strength. In 2009, the Company's net revenues were $8.51 billion. Further information on ST can be found at www.st.com
|
Related News
- STMicroelectronics Completes the Sale of Numonyx to Micron Technology
- GlobalFoundries and STMicroelectronics Finalize Agreement for New 300mm Semiconductor Manufacturing Facility in France
- WiLAN Subsidiaries Enter into License Agreement with Micron
- MoSys and Peraso Technologies Announce Definitive Agreement for Business Combination
- Rambus and Micron Extend Patent License Agreement
Breaking News
- Ubitium Debuts First Universal RISC-V Processor to Enable AI at No Additional Cost, as It Raises $3.7M
- TSMC drives A16, 3D process technology
- Frontgrade Gaisler Unveils GR716B, a New Standard in Space-Grade Microcontrollers
- Blueshift Memory launches BlueFive processor, accelerating computation by up to 50 times and saving up to 65% energy
- Eliyan Ports Industry's Highest Performing PHY to Samsung Foundry SF4X Process Node, Achieving up to 40 Gbps Bandwidth at Unprecedented Power Levels with UCIe-Compliant Chiplet Interconnect Technology
Most Popular
- Cadence Unveils Arm-Based System Chiplet
- CXL Fabless Startup Panmnesia Secures Over $60M in Series A Funding, Aiming to Lead the CXL Switch Silicon Chip and CXL IP
- Esperanto Technologies and NEC Cooperate on Initiative to Advance Next Generation RISC-V Chips and Software Solutions for HPC
- Eliyan Ports Industry's Highest Performing PHY to Samsung Foundry SF4X Process Node, Achieving up to 40 Gbps Bandwidth at Unprecedented Power Levels with UCIe-Compliant Chiplet Interconnect Technology
- Arteris Selected by GigaDevice for Development in Next-Generation Automotive SoC With Enhanced FuSa Standards
E-mail This Article | Printer-Friendly Page |