Micron just got a whole lot bigger ... and what a bargin. Brand new memory productions would have cost in excess of $9bn USD ... acquiring Elpida for only $2.5bn means that Micron would now has the entire Elpida memory production line at a fraction of the cost.

"Micron announces deal to acquire Elpida. Micron Technology and Elpida Memory's trustees have signed a definitive sponsor agreement for Micron to acquire Elpida, according to the US memory chipmaker. The agreement has been entered into in connection with Elpida's corporate reorganization proceedings conducted under the jurisdiction of the Tokyo District Court.

Micron revealed that under the agreement, JPY200 billion (US$2.5 billion) total consideration and less certain reorganization proceeding expenses will be used to satisfy the reorganization claims of Elpida's secured and unsecured creditors. Micron will acquire 100% of the equity of Elpida for JPY60 billion to be paid in cash at closing."

Source: Digitimes

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