Micron to acquire Numonyx

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

The company said that it would partner with Intel and STMicroelectronics in a deal which would issue Micron shares worth $1.27bn to Numonyx shareholders. Intel and STMicroelectronics will also receive Micron shares as part of the deal.

In making the deal, Micron said that it hoped to strengthen its position in the flash memory market. In particular, the company is looking to steady its position in the DRAM, NOR and NAND memory chip space.

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 said that it hopes to complete the transaction by the end of the summer.