Micron Technology Inc. Wednesday said it would buy Lexar Media Inc. for about $675 million in stock to help expand in the flash memory chip market.
Micron said it would issue 0.5625 share for each Lexar share. That put the purchase price at $688 million, or $8.43 per share, a premium of 19 percent based on Micron's Tuesday closing market price of $14.98.
Lexar shares jumped $1.33, or nearly 19 percent, to $8.42 in early Nasdaq trade. Micron's shares fell 30 cents, or 2 percent, to $14.70, bringing the value of the deal down to $675 million.
Micron said it would exchange Lexar's 81.6 million shares outstanding and issue additional stock upon the exercise of assumed options.
The company has tried to reduce its reliance on the volatile market for computer memory, known as dynamic random access memory, or DRAM, by broadening its product line to include flash memory chips found in digital music players as well as image sensors found in cameras and cellphones.
Micron said the acquisition of Lexar would strengthen its position in the market for NAND flash memory — an ideal device for portable electronics since it can retain data without power.
Lexar makes digital memory cards for consumer electronics like mobile phones and digital cameras. It licenses its technology to companies that include SanDisk Corp., Samsung and Sony Corp.
