Micron to scoop up Intel portion of IM Flash for $1.5 billion
Micron has announced it will be exercising its call option to scoop up Intel’s holding of its IM Flash joint venture.
Intel will walk away with $1.5 billion in cash, and is able to set the transaction date in the next six to twelve months.
“The payment will end Intel’s noncontrolling interest in IM Flash and eliminate IM Flash member debt on Micron’s balance sheet, which was $1 billion as of Nov. 29, 2018,” Micron said in a statement.
Micron said the transaction would have no meaningful impact on its non-GAAP results, and IM Flash was already consolidated. The company flagged its intention to takeover IM Flash in October.
“Micron’s acquisition of IM Flash demonstrates our strong belief that 3D XPoint technology and other emerging memories will provide a unique differentiator for the company and be an essential solution for new data-hungry applications,” Micron President and CEO Sanjay Mehrotra said at the time.
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