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Micron completes the purchase of Texas Instruments’ division

SHARE Micron completes the purchase of Texas Instruments’ division

Micron Technology Inc. and Texas Instruments on Thursday announced the completion of the sale of TI's memory business to Micron, including TI's wholly owned fabrication plans in Avezzano, Italy, and Richardson, Texas, its joint venture interests in Japan and Singapore, and an assembly and test operation in Singapore.

Under the terms of the agreement, TI received approximately 28.9 million shares of Micron common stock valued at $881 million as of the closing date, $740 million in notes convertible into an additional 12 million shares of Micron common stock, and a $210 million subordinated note. The market value of the 6.5 percent convertible and subordinated notes is approximately $836 million.In addition to TI's memory assets, Micron received $550 million in proceeds from financing provided by TI to facilitate the deployment of Micron's technology through-out the acquired business. As part of the transaction, Micron also received a 10 year royalty-free cross license agreement.

The proceeds are less than previously announced as TI agreed to retain its Italian government-sponsored debt.

TI expects a before tax gain of approximately $100 million on the sale, which will be deferred until the repayment of the TI-provided financing.