SAN FRANCISCO -- US memory chip vendor Micron Technology Inc. announced the closing of its $2.5 billion deal to acquire bankrupt Japanese memory chip vendor Elpida Memory Inc., completing a year-long quest to buy its former rival.
Micron announced Wednesday that it closed the deal to acquire 100 percent of Elpida's equity. Micron also announced it completed a separate deal to acquire 24 percent of Rexchip Electronics Corp. from Taiwan's Power Chip Technology Corp. and certain of its affiliates. Micron now will hold about 89 percent of Rexchip, including Elpida's 65 percent stake in the company.
Micron's acquisition of Elpida, which was in process for over a year (see Micron confirms Elpida deal, also plans Rexchip purchase), survived challenges from several of Elpida's creditors that claimed the deal didn't value Elpida fairly (see Bondholders say Elpida is grossly undervalued).
In closing the deal, Micron assumes control of Elpida's 300-mm DRAM fab inHiroshima, Japan. In the Rexchip deal, Micron gains control over Rexchip's 300-mm DRAM fab in Taiwan. Micron also takes 100 percent ownership of Akita Elpida Memory Inc., including a test and assembly facility located in Akita, Japan.
In all, Micron said the transactions boost its production capacity by about 185,000 300-mm wafers per month, increasing the firm's total production capacity by 45 percent.
"This combination will result in enhanced R&D and manufacturing scale, significant cost and production synergies and a stronger memory product portfolio to provide solutions to our customers," said Micron CEO Mark Durcan, in a statement.
Yukio Sakamoto, Elpida's president and CEO, resigned at the completion of the deal, Micron said. Yoshitaka Kinoshita will serve as the president of Micron Japan.
The terms of the deal called for Micron to acquire Elpida for about $750 million to be paid in cash at closing. In addition, Micron agreed to pay about $1.75 billion to Elpida's secured and unsecured debtors, paid in annual installments through 2019.