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Micron acquires Lexar Media

Posted: 13 Mar 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Mark LaPedus? Micron? flash-memory card? USB? Lexar Media?

In a bold entry into the flash-memory card, USB drive and other end-user markets, Micron Technology Inc. said that it has acquired Lexar Media Inc. The deal is valued at $688 million in stock.

Under terms of the agreement, each outstanding common share of Lexar will receive 0.5625 share of Micron stock. Micron expects to issue shares in exchange for 81.6 million Lexar shares outstanding. Additional Micron shares will be issued upon the exercise of assumed stock options.

According to the press release, the move propels Micron into the flash-card business and puts the memory chip maker in direct competition against SanDisk Corp. It also pits Micron and its flash-memory partner, Intel Corp., up against the formidable team of San Disk and its partner, Toshiba Corp.

Lexar is a marketer and maker of NAND flash memory products, including memory cards, USB flash drives, card readers and ATA controller technology for the digital photography, consumer electronics, industrial and communications markets.

The acquisition will strengthen Micron's position in NAND flash. Micron's technology and manufacturing efforts in NAND flash will combine with Lexar's expertise in system design technology, brand recognition and the retail channels. In effect, the combined companies are creating a vertically integrated entity focused on the NAND business.

"With this acquisition, Micron will have a complete package of NAND memory solutions for our customers," said Steve Appleton, Micron chairman, CEO and president. "Together with our NAND designs, technology, manufacturing capability and distribution channels, Micron is in a strong position to serve the flash storage requirements of consumer electronics and enterprise customers."

Micron, best known as a leading DRAM maker, has been seeking to diversify into other technology areas and away from the intensely competitive commodity DRAM market for some time. In addition, the company has been shipping NAND flash memory and recently formed a flash-memory venture with Intel Corp., dubbed IM Flash.

- Mark LaPedus
EE Times

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