THE BIG DEAL: Memory-chip maker Micron Technology Inc. said Monday that it is buying Elpida Memory Inc. for about $750 million in cash. The companies put the deal’s total value at approximately $2.5 billion. That includes about $1.75 billion in future annual installment payments that Micron would make through 2019.
A SMALLER DEAL: Micron is also purchasing Powerchip Technology Corp.’s 24 percent stake in Rexchip Electronics Corp. for approximately $334 million. Elpida has about a 65 percent stake in Rexchip. Combined, this will give Micron Technology an 89 percent stake in Rexchip.
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THE OUTLOOK: Micron said the deal for Elpida would boost its wafer manufacturing capacity by about 50 percent. It expects both deals will close in the first half of 2013.
