March 8, 2006 – Micron Technology Inc., Boise, ID, has agreed to acquire Lexar Media Inc., Fremont, CA, in a $690 million stock swap. Through the deal Micron bolsters its NAND flash business with controller and system design technology.
Lexar, which makes NAND flash products including memory cards, USB flash drives, card readers, and ATA controllers, gains Micron’s manufacturing expertise, financial stability, and economies of scale for R&D and marketing. The transaction is expected to be completed by the end of 3Q06, at which point Lexar would become a wholly owned subsidiary of Micron.
“Through this acquisition, we expect to better align Lexar’s cost structure with business conditions and increase our development and go-to-market scale in order to compete more effectively,” said Eric Stang, Lexar chairman, CEO and president. “By merging with Micron, Lexar can achieve significant cost synergies and become better positioned to satisfy customer needs and establish faster growth, especially in new emerging mobile handset and solid-state computing businesses.”