Micron to pay $1.5 bn in cash to Intel to buy IM Flash

Micron Technology is set to take control of IM Flash Technologies joint venture with Intel, Reuters reported.
Micron TechnologyMicron said the deal terms include payment of about $1.5 billion in cash, as well as taking over Intel’s debt of about $1 billion as of Aug. 30 to the venture.

Intel and Micron initially contributed about $1.2 billion each to set up IM Flash Technologies in 2006.

IM Flash (Intel-Micron Flash) makes 3D XPoint used in data centers and high-end computers.

In July, the two chipmakers decided to conclude joint development of 3D XPoint technology and to pursue operations independently.

Micron does not anticipate the transaction to impact its financial results or change its fiscal 2019 capital expenditures. IM Flash will become a wholly-owned subsidiary of Micron after the deal closes.

The company can exercise a call option starting Jan. 1, 2019 and the transaction is expected to close between six and 12 months after Micron exercises the option.

Based on prior agreements, Micron will sell 3D XPoint memory wafers to Intel for up to a year after close.