It's official. Late Sunday evening, Micron Technology announced that it was taking over Japanese rival Elpida Memory for $750 million, in a move that is expected to grow the Boise-based chipmaker and extend its portfolio deeper into the world of dynamic random access memory marketplace. In addition to the $750 million cash (approximately 60 billion yen), Micron will pay 140 billion yen in upcoming annual installments to cover Elpida's debt. All in, the deal is close to $2.5 billion.
Elpida, which specializes in chips for smartphones and tablets, filed for bankruptcy protection in February, reporting 448 billion yen in liabilities.
Currently, Samsung Electronics is the world's biggest maker of memory chips used in personal computers, but by acquiring Elpida, Micron is expected to boost its share to 25 percent, surpassing South Korea's SK Hynix, and becoming the second-biggest player in the memory-chip marketplace.
Additionally, Micron announced this morning that it is buying a 24 percent stake in Rexchip Electronics Corporation from the Powerchip Technology Corporation for approximately $334 million. Since Elpida owns a 65 percent stake in Rexchip, Micron will now own 89 percent of that company once both deals close.
At this morning's opening bell of the NASDAQ exchange, Micron shares bumped up 5 percent to $6.62 per share.