ST, Intel form independent flash company

Under the terms of the agreement, ST will sell its flash memory assets, including its NAND joint venture interest and other NOR resources, to the new company, whilst Intel will sell its NOR assets and resources. Both companies will also be contributing their phase change memory developments. “The new company will be positioned to service customers with all of the elements necessary to deliver current and next generation non volatile memory technologies, while allowing ST to redefine its participation in flash memory,” said Carlo Bozotti, ST’s president and ceo, pictured, who will also be the non executive chairman of the new company. Once the deal is concluded, Intel will hold a 45.1% stake and receive $432million in cash, ST will hold 48.6% of the company and will receive $468m, whilst Francisco Partners will invest $150m for a 6.3% shareholding. “From the outset, the company will be a leading supplier of flash memory solutions for wireless communications,” said Brian Harrison, general manager of Intel’s flash memory group and ceo designate of the new company. “We will be able to offer customers complete solutions with NOR and NAND based technologies, which we believe will provide significant opportunities for growth and the potential to develop products for many new application areas and geographic regions.”