Summary
Micron Technology, Inc. (MU) announced a significant development regarding its joint venture with Intel Corporation, IM Flash Technologies, LLC (IMFT). Micron has been notified by Intel that the closing for the sale of Intel's noncontrolling interest in IMFT to Micron is scheduled for October 31, 2019. This transaction will see Micron acquire Intel's stake for an estimated $1.3 billion to $1.5 billion in cash. The purchase price includes the settlement of approximately $1 billion in IMFT member debt owed to Intel as of Micron's second quarter of fiscal 2019.
Key Highlights
- 1Micron to acquire Intel's noncontrolling interest in IM Flash Technologies (IMFT) by October 31, 2019.
- 2Expected cash payment to Intel for the acquisition ranges from $1.3 billion to $1.5 billion.
- 3Transaction includes settlement of $1 billion in IMFT member debt owed to Intel.
- 4Micron anticipates recognizing a GAAP financial gain of approximately $100 million from the transaction.
- 5The event marks a significant step in Micron's consolidation of its NAND flash memory operations.