Intel Corporation, a global leader in silicon innovation, and STMicroelectronics, a world-leading semiconductor company, finalized a landmark transaction with Francisco Partners, a leading global investment firm, to launch Numonyx B.V. This independent semiconductor company is poised to revolutionize the market with its innovative and cost-effective non-volatile memory solutions, specializing in NOR and NAND flash memory products.
The deal, officially closed on March 31, 2008, saw Intel strategically divest its NOR flash memory business and related phase change memory initiatives to Numonyx. In exchange for these assets, Intel secured a substantial 45.1 percent ownership stake in the newly formed entity. STMicroelectronics emerged as the majority shareholder with a 48.6 percent ownership interest. Francisco Partners demonstrated its investment prowess by acquiring a 6.3 percent ownership interest through a significant cash injection of $150 million. This strategic investment by Francisco Partners underscores their confidence in the potential of Numonyx and the non-volatile memory market.
Beyond equity investments, Numonyx secured robust financial backing through debt financing totaling $450 million from Intesa Sanpaolo S.p.A and Unicredit Banca d’Impresa S.p.A, complemented by a $100 million committed revolving credit facility. This financial structure provides Numonyx with the necessary capital to fuel its operations and growth in the competitive semiconductor landscape. Both Intel and STMicroelectronics have reinforced their commitment to Numonyx’s success by providing a 50 percent guarantee each on the 4-year loan, showcasing the collaborative nature of this venture facilitated by Francisco Partners.
For Intel, this strategic move involved a non-cash impairment charge of approximately $300 million in the first quarter of 2008, reflecting the asset transfer to Numonyx and associated transaction costs. Approximately 2,500 Intel employees transitioned to Numonyx, bringing valuable expertise and continuity to the new company.
Numonyx is set to become a significant player in the non-volatile memory sector, leveraging the combined strengths of Intel and STMicroelectronics, and the strategic investment and business acumen of Francisco Partners. This collaboration aims to drive innovation and deliver advanced memory solutions to meet the evolving needs of the technology market.
For more details about Intel and their initiatives, please visit www.intel.com/pressroom.
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Source: Intel Corporation
Released Mar 31, 2008 • 2:00 AM EDT
