Micron Technology and Elpida Memory’s trustees have signed a definitive agreement for Micron to acquire and support Elpida.
The agreement has been entered into in connection with Elpida’s corporate reorganisation proceedings conducted under the jurisdiction of the Tokyo District Court.
Under the agreement, JPY200bn (£1.6bn) total consideration, less certain reorganisation proceeding expenses, will be used to satisfy the reorganisation claims of Elpida’s secured and unsecured creditors.
Micron will acquire 100 per cent of the equity of Elpida for JPY60bn to be paid in cash at closing.
In addition, JPY140bn in future annual instalment payments through 2019 will be paid from cash flow generated from Micron’s payment for foundry services provided by Elpida, as a Micron subsidiary.
According to a statement, Elpida has built a strong presence in Mobile DRAM, targeting mobile phones and tablets. Micron is said to be a leader in delivering enterprise DRAM solutions for networking and servers as well as offering a wide product portfolio in NAND and NOR. Combining the two complementary product portfolios will further strengthen Micron’s position in the memory market.