Micron to acquire Numonyx for US$1.27bn

Micron has agreed to acquire rival chipmaker Numonyx in an all-stock deal.

The company will partner with Intel and STMicroelectronics to issue Micron shares worth US$1.27bn (A$1.42m) to Numonyx shareholders. Intel and STMicroelectronics will also receive Micron shares as part of the deal.

Micron said that it hopes to strengthen its position in the Flash memory market, particularly in the DRAM, NOR and Nand spaces.

The deal could also give Micron a foothold in emerging memory markets, as Numonyx has been involved in the development of technologies such as phase-change memory

"Acquiring Numonyx brings together two memory leaders, and positions Micron to offer the most comprehensive, cost-competitive solutions in the industry to a broad range of customers and end-markets," said Micron chairman and chief executive Steve Appleton.

The company hopes to complete the transaction by the end of the summer.