Electronics Production | March 31, 2008
Numonyx ready to enter market
Intel, STMicroelectronics and Francisco Partners have closed transaction to create Numonyx.
Intel announced that the company has finalised and closed its transaction with STMicroelectronics and Francisco Partners to create a new independent semiconductor company Numonyx. The new company will design, develop and manufacture NOR and NAND flash memory products. 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% ownership in Numonyx. ST Microelectronics acquired a 48.6% ownership interest in Numonyx. Francisco Partners acquired a 6.3% 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 and Unicredit Banca d'Impresa 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% 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.