SANTA CLARA, Calif. – In a landmark move within the semiconductor industry, Intel Corporation, STMicroelectronics, and Francisco Partners, a leading global private equity firm, announced the successful completion of a strategic transaction to establish Numonyx B.V. This newly formed independent company is poised to revolutionize the non-volatile memory solutions market, focusing on the design, development, and manufacturing of cutting-edge NOR and NAND flash memory products.
The agreement sees Intel transfer its NOR flash memory business assets, along with specific phase change memory initiatives, to Numonyx. In exchange, Intel secures a substantial 45.1 percent ownership stake in the new venture. STMicroelectronics has also solidified its position with a 48.6 percent ownership interest. Crucially, Francisco Partners has played a vital role in the formation of Numonyx, contributing a significant cash investment of $150 million in return for a 6.3 percent ownership interest. This strategic financial backing from Francisco Partners underscores the confidence in Numonyx’s potential and the future of the non-volatile memory sector.
Furthermore, Numonyx has secured robust financial foundations beyond the equity investments. The company has finalized a substantial $450 million debt financing agreement at closing, provided by Intesa Sanpaolo S.p.A and Unicredit Banca d’Impresa S.p.A, alongside a $100 million committed revolving credit facility. This financial structure, underpinned by guarantees from both Intel and STMicroelectronics for 50 percent of the debt each, provides Numonyx with the capital to aggressively pursue innovation and market leadership over its initial 4-year term.
For Intel, this transaction will result in a non-cash impairment charge of approximately $300 million in the first quarter of 2008. This charge is directly related to the assets transferred to Numonyx and other associated transactional costs. Approximately 2,500 Intel employees with expertise in the relevant memory technologies will transition to Numonyx, bringing invaluable experience and knowledge to the new entity.
Numonyx is set to become a key player in delivering innovative and cost-effective non-volatile memory solutions. The collaboration between technology leaders Intel and STMicroelectronics, combined with the strategic investment and business acumen of Francisco Partners, positions Numonyx for significant growth and impact in the global semiconductor landscape.
Intel, a recognized world leader in silicon innovation, continues to drive advancements in how people live and work through its technologies and products. More information about Intel is readily available at www.intel.com/pressroom.
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Source: Intel Corporation
Released Mar 31, 2008 • 2:00 AM EDT
