Micron to acquire Elpida

The ailing Japanese DRAM giant, Elpida, is set to be taken over by Micron. The bidding process which encapsulated Micron, Toshiba and Global Foundries resulted in Micron placing the highest bid which is suggested to be between $1.3-1.5 billion. Elpida’s company value is mainly tied up in its biggest asset, its Hiroshima manufacturing facility valued at $1 billion.

Micron are reported to have around $2.1 billion available for short term investments such as this take over deal. Micron recently reported a loss of $224 million for 2012 fiscal second quarter ending March the 1st. However, as DRAM prices begin to pick up again this relatively cheap acquistion of Elpida should reap benefits for Micron in the long term as well as saving the jobs of many Elpida workers.

Source: Tom’s Hardware