Micron Technology Inc. said Oct. 18 that it plans to acquire Intel Corp.'s remaining interest in IM Flash Technologies, LLC joint venture.
Micron can exercise the call option starting Jan. 1, 2019. The timeline to close the transaction is between six and 12 months after the date Micron exercises the call.
The IM Flash joint venture is already consolidated in Micron's financial statements. Micron does not anticipate the transaction to impact its financial results or change its fiscal 2019 capital expenditures and long-term capital expenditure target.
At the time of close, Micron expects to pay approximately $1.5 billion in cash for the transaction, dissolving Intel's non-controlling interest in IM Flash as well as IM Flash member debt, which was approximately $1 billion as of Aug. 30, 2018.
At the close of the transaction, IM Flash will become a wholly owned subsidiary of Micron, and all IM Flash employees will become part of the Micron team.