Micron exercises call option to acquire remaining interest in IM Flash Technologies joint venture
Micron has announced the company is exercising its right to purchase Intel’s interest in the parties’ joint venture, IM Flash Technologies, LLC (IM Flash). On Oct. 18, 2018, Micron disclosed its intention to exercise the option.
‘The IM Flash acquisition will enable Micron to accelerate our R&D and optimise our manufacturing plan for 3D XPoint,’ said Micron Technology President and CEO Sanjay Mehrotra. ‘The Utah-based facility provides us with the manufacturing flexibility and highly skilled talent to drive 3D XPoint development and innovation, and to deliver on our emerging technology roadmap.’
Micron anticipates that the pending acquisition will have no meaningful impact on overall non-GAAP financial results and foresees no changes to the company’s fiscal 2019 capital expenditures or long-term capital expenditure target.
Micron has already consolidated the IM Flash joint venture, as reflected in its most recently reported financial statements. The transaction will close on a date in the next six to 12 months to be selected by Intel. At the time of close, Micron expects to pay approximately $1.5 billion in cash for the transaction. The payment will end Intel’s noncontrolling interest in IM Flash and eliminate IM Flash member debt on Micron’s balance sheet, which was $1 billion as of November 29, 2018.