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Micron Technology has finalized terms of the deal to acquire Elpida Memory, the bankrupt maker of dynamic random access memory (DRAM), from Japan, according to a local media report. The U.S.-based maker of computer memory will pay around $2.5 billion for Elpida's assets.
The list of potential companies to acquire Elpida was narrowed down in May, when Micron gained exclusive rights to bid for the insolvent DRAM manufacturer. Micron Technology has since assessed Elpida production facilities and technologies and held negotiations on debt forgiveness with creditors of Elpida, including financial institutions, leasing companies, and major holders of Elpida bonds, reports Nikkei.
As a result of the negotiations, Micron will have to pay ¥200 billion ($2.5 billion) for Elpida's manufacturing facilities, intellectual properties and other assets. Of ¥200 billion, around ¥140 billion will be paid to creditors of Elpida, while the rest will go to Elpida's business partners who hold uncollateralized loan claims.
Micron reportedly plans to invest another ¥100 billion (~$1.25 billion) in Elpida fabrication facilities in order to boost output of mobile DRAM used on mobile devices, such as LPDDR, LPDDR2 and other.
Since the deal is not announced officially, neither Elpida, nor Micron have commented on the news-story.
Tags: Micron, Elpida, Business, DRAM
