Monday, March 31, 2008

Intel Spins Off Flash Memory Company

Santa Clara-based Intel said Sunday that the firm has finalized a transaction with STMicroelectronics and private equity firm Francisco Partners, to create a new company called Numonyx B.V. The new company will design, develop, and manufacture NOR and NAND flash memory products. According to Intel, approximately 2,500 Intel employees will joint he new firm. Francisco Partners has invested $150M in cash in the new firm for 6.3 percent ownership; the new company also has received $450M in debt financing from Intesa Sanpaolo S.p.A. and Unicredit Banca d'Impresa S.p.A., plus $100M in a revolving credit facility. Intel will own 45.1 percent of Numonyx in exchange for the transfer of assets associated with its flash memory business. More information »