U.S. semiconductor devices producer Micron Technology Inc announced that it planned to take full control of IM Flash Technologies joint venture (JV) with technology company Intel Corporation.
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 August 30. IM Flash will become a wholly-owned subsidiary of Micron after the deal closes.
Intel and Micron initially contributed about $1.2 billion each to set up IM Flash Technologies in 2006. Based on prior agreements, Micron will sell 3D XPoint memory wafers to Intel for up to a year after close.
Micron can exercise a call option starting January 1, 2019, and the transaction is expected to close between six and 12 months after Micron exercises the option.