Intel, STMicroelectronics & Francisco Partners join forces to create Numonyx Page: 1
Intel finalize deal with STMicroelectronics & Francisco Partners
Today Intel issued a press release
announcing the company had completed a deal with STMicroelcectronics and Francisco Partners which will see the creation of a new semiconductor company 'Numonyx B.V.' .
Intel is set to take on an impairment charge for the first quarter of 2008 for Numonyx, which is being created to deliver, cost-effective, non-volatile memory solutions by using combinations of leading NOR, NAND and RAM memory technologies as well as new Phase Change Memory (PCM).
As part of the transaction, Intel has transferred the assets associated with its NOR flash memory business and certain assets related to the company's phase change memory initiatives to Numonyx in exchange for 45.1 percent ownership in Numonyx. ST Microelectronics acquired a 48.6 percent ownership interest in Numonyx. Francisco Partners acquired a 6.3 percent ownership interest in exchange for a cash investment of $150 million. As part of the overall transaction, Numonyx will receive $450 million of debt financing at closing from Intesa Sanpaolo S.p.A and Unicredit Banca d'Impresa S.p.A in addition to a $100 million committed revolving credit facility. The loan has a 4-year term and Intel and STMicroelectronics have each provided Numonyx and the banks with a guarantee of 50 percent of the indebtedness.
Intel estimates that it will record additional non-cash impairment of approximately $300 million related to the assets transferred to Numonyx and other costs associated with this transaction in the first quarter of 2008. Approximately 2,500 Intel employees are joining Numonyx as part of this transaction.
With a fair few staff shifting over and a sizeable sum of money invested it seems Intel have high hopes for Numonyx.