, founded in 1978 in Boise, Idaho and one of the state's largest employers, announced it has signed a definitive agreement to acquire struggling Elpida Memory in a deal worth $2.5 billion. Under terms of the agreement, Micron will acquire a 100 percent stake in Elpida in exchange for a lump sum cash payment of 60 billion Yen (about $750 million), followed by 140 billion Yen (around $1.75 billion) in future annual installment payments through 2019 for foundry services provided by Elpida.
"We are creating the industry-leading pure-play memory company," said Micron CEO Mark Durcan. "Today's transactions will help strengthen the combined companies' market position in the memory industry through increased research and development and manufacturing scale; improved access to core memory market segments; and additional wafer capacity to balance among DRAM, NAND and NOR memory solutions for the ultimate benefit of Micron and Elpida customers."
Image Source: Micron
Among Elpida's assets is a 300mm DRAM fabrication plant in Hiroshima, Japan. Elpida also owns a 65 percent stake in Rexchip, which itself owns a 300mm DRAM fab in Taiwan.
Related to the acquisition, Micron also agreed to purchase from Powerchip Technology Corporation its 24 percent stake in Rexchip for around $334 million. Combined with the transfer of Elpida's share, Micron gains control of around 89 percent of Rexchip's outstanding shares.