by Anton Shilov
10/21/2005 | 12:00 PM
SanDisk Corp. and Matrix Semiconductor announced that they had signed a definitive agreement for SanDisk to acquire Matrix. Matrix is known for its so-called 3D integrated circuit (three dimensional) one-time programmable (OTP) memory technology which allows to create cost-effective storage applications. The acquisition may mean that SanDisk has plans to manufacture OTP memory devices used for content distribution.
“We have high regard for the Matrix team and welcome them to SanDisk. Use of the Matrix 3D Memory extends beyond video games and hopefully will play an important role in content distribution such as incorporation in our recently launched Gruvi cards for secure distribution of premium music titles and other preloaded content in handsets,” said Eli Harari, Chief Executive Officer of SanDisk.
The Matrix technology can achieve low cost by building multiple layers of memory arrays on a standard silicon substrate so that active circuitry is not confined to the silicon surface but extends vertically as well. Because OTP technology is not rewritable once programmed, it complements rather than directly competes with Flash memory, which is rewritable but more costly. Matrix has over 100
SanDisk intends to support and sell Matrix’s 3D OTP products through its various sales channels and will work closely with Matrix’s customers to assure continuity of supply during the transition.
The acquisition consideration will be approximately $250 million, consisting of approximately $238 million of newly issued SanDisk shares and equity incentives and approximately $12 million of cash. The closing of the acquisition is subject to regulatory approval and the satisfaction of standard conditions. The parties expect to complete the acquisition by the end of 2005.
“Joining SanDisk will provide us with financial, manufacturing, marketing and sales channel resources to help establish Matrix 3DM as a mainstream storage technology for a broad range of consumer applications,” said Dennis Segers, President of Matrix Semiconductor.