IM Flash Technologies

On Thursday, Micron Technology Inc announced about its plan to buy the entire stake of Intel Corp in the joint venture IM Flash (Intel- Micron) Technologies, assuming full control thereafter.

The deal will cost Micron a sum of $1.5 billion cash payment along with Intel’s debt to the venture valued at $1 billion as of August 30th.

IM Technologies was set up in 2006 by Intel and Micron with a contribution of $1.2 billion each.

3D XPoint which is used in data centres and high- end computers are manufactured by IM Flash. The joint venture is consolidated in Micron’s reported financial statements.

The decision to conclude the joint development of 3D XPoint technology was taken in July by the two companies with the objective to pursue operations independently.

The decision is not expected to have any effect on Micron’s financial results or capital expenditures in the coming year according to the company.

A call option starting January 1, 2019 and closing between six to 12 months after Micron exercises the option is in the loop.

Up till a year after close, Micron will sell 3D XPoint memory wafers to Intel in accordance to prior agreements. Once the deal closes, IM Flash will become a wholly- owned subsidiary of Micron Technology Inc.

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