Micron Buys Lexar For $688 Million in Stock
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Micron will acquire Lexar for stock worth around $688 million, expanding its products in the market for a popular variety of flash memory. With this purchase Micron will have a strong NAND memory division.
Micron will issue 0.5625 shares for each Lexar share outstanding, valuing Lexar at $8.43 a share based on Tuesday night’s close. In premarket trading Wednesday, Lexar was up $1.03, or 14.5%, to $8.12. Micron’s stock fell 40 cents, or 2.7%, to $14.58. The acquisition is a play on NAND flash, a type of memory that retains data even when its power supply is cut off. Lexar’s patent portfolio is centered on controller and system design within the NAND category, technology that should complement Micron’s manufacturing and marketing muscle.
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