Micron buys the number three Flash memory maker

MICRON HAS BOUGHT the number three flash memory chip maker Numonyx.

The deal is an all-stock transaction valuing Numonyx at approximately $1.27 billion. Micron will issue 140 million of its common shares to Numonyx, Intel, ST Microelectronics and Francisco Partners, all of which are shareholders in the outfit.

The transaction strengthens Micron's position as one of the world's top memory makers flogging DRAM, NAND and NOR memory. Micron will also gain increased manufacturing scale globally along with access to Numonyx's customer base, providing significant opportunities to increase multi-chip offerings in the embedded and mobile markets.

Steve Appleton, chairman and CEO of Micron said that buying Numonyx bought together two memory leaders. Numonyx has just been climbing out of trouble bought on by the crash in the chip market. It had been doing well selling flash memory for mobile phones.

Micron thinks that the acquisition will not harm its bottom line either and expects to make more money from the company when the deal closes in three to six months. µ