October 19, 2018 / 1:08 AM / in 10 months

Micron to buy Intel's stake in joint venture IM Flash Technologies

(Reuters) - Micron Technology Inc (MU.O) said on Thursday it planned to take full control of IM Flash Technologies joint venture with Intel Corp (INTC.O).

The deal terms include payment of about $1.5 billion in cash, as well as taking over Intel’s debt to the venture, which was about $1 billion as of Aug. 30, Micron said.

Intel and Micron initially contributed about $1.2 billion each to set up IM Flash Technologies in 2006. [nGNXbGBQ8d]

IM Flash (Intel-Micron Flash) makes 3D XPoint used in data centres and high-end computers and the joint venture is already consolidated in Micron’s reported financial statements.

In July, the two chipmakers decided to conclude joint development of 3D XPoint technology and to pursue operations independently. (bit.ly/2CqOIQ8)

Micron does not anticipate the transaction to impact its financial results or change its fiscal 2019 capital expenditures.

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.

IM Flash will become a wholly-owned subsidiary of Micron after the deal closes.

Reporting by Vibhuti Sharma in Bengaluru; Editing by Sriraj Kalluvila

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