Micron Tech Agrees To Acquire Remaining Interest In Taiwan's Inotera Memories

(RTTNews) - Micron Technology, Inc. (MU) and Inotera Memories Monday announced the signing of an agreement for Micron to acquire Inotera's remaining shares for consideration worth 30 New Taiwan Dollars per share or about $0.92 per share.

Micron currently owns about 33 percent of Inotera. This represents a transaction value of $3.2 billion, net of cash and debt at Inotera, to acquire the remaining equity.

The acquisition is expected to be immediately accretive to gross margin, EBITDA, earnings per share and free cash flow.

Today, Micron purchases 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 2016. Inotera had net cash of approximately $0.9 billion as of its latest fiscal quarter ending September 30, 2015.

The agreement provides an additional 60-day period for Micron and Inotera to agree on further mechanics and details of the transaction. Either party can terminate the transaction if these additional agreements are not reached within that timeframe or if certain other conditions to close are not met.

Formosa Group Companies, including Nanya Technology Corp., currently own 32 percent of Inotera. Of this group, entities holding about 31 percent of Inotera are expected to enter into voting agreements in support of the transaction.

The companies expect the transaction to close in the middle of 2016. Micron expects to record one-time acquisition related items.