Intel, STMicroelectronics and Francisco Partners have announced that they have finalized and closed its transaction to finally create a new and independent semiconductor company called Numonyx B.V, which will design, develop and manufacture both NOR and NAND flash memory products. The venture took forth back in May 2007, when Intel and STMicroelectronics announced the formation of a new independent company that would take over Intel’s and ST’s work with NOR and NAND flash.
Intel will own 45.1%, while ST will own 48.6% of the Numonyx. The remainder 6.3%, will be owned by the third player, Francisco Partners, in return from a $150 million investment. Intel will transfer all of its NOR flash memory business assets and parts of its development of phase change memory (PCM) to the new company, while ST will transfer its NOR, NAND and PCM assets to the new company in exchange for a slightly larger portion of the company.
“Also at the closing, Numonyx entered into financing arrangements for a $450 million term loan and a $100 million committed revolving credit facility from Intesa Sanpaolo S.p.A. and Unicredit Banca d’Impresa S.p.A. The loans have a four-year term and Intel and STMicroelectronics have each granted in favor of Numonyx a 50% guarantee not joint and several, for indebtedness. At close, Numonyx has a cash position of about $585 million.”
