Micron and Inotera Reach Definitive Agreement for Micron to Acquire Remaining Interest in Inotera

By Dan Francisco - 2016-02-03

Micron Technology and Inotera Memories announced last December that the companies signed an agreement for Micron to acquire the remaining interest in Inotera Memories of Taiwan, and now the two companies have reached a definitive agreement as the acquisition moves forward toward its scheduled completion in the middle of this year.

The transaction involves Micron acquiring Inotera’s remaining shares for 30 New Taiwan Dollars per share or approximately $0.90 USD per share. Micron currently owns approximately 33 percent of Inotera. This represents a transaction value of approximately $3.2 billion, net of cash and debt at Inotera, to acquire the remaining equity.

The acquisition presents both companies with a compelling combination and signals the culmination of a highly successful seven-year partnership. The transaction also enables Micron to realize the full financial and operational benefit of Inotera’s operations, including an expected average incremental free cash flow of at least $600 million per year, and provides a strong future for Inotera and its employees.

Micron has been purchasing 100 percent of Inotera’s DRAM output, representing approximately 35 percent of Micron’s total DRAM production. Inotera is expected to be fully deployed on Micron’s leading-edge 20 nanometer technology by the middle of this year as well.

For more information, see Micron’s 8-k filing.

Dan Francisco