Micron to buy Numonyx for $1.27 billion

Numonyx is the world’s No. 3 maker of flash-type memory chips, formed last year using memory chip assets from STMicroelectronics NV and Intel Corp, specialising in cellphone memory.

Under the agreement, Micron will issue 140 million Micron common shares to Numonyx shareholders, Intel, STMicroelectronics, and Francisco Partners.

Up to 10 million additional Micron common shares could be issued based on other factors including the volume weighted average of the price of Micron shares. STMicro said it will net around $527 million worth of Micron shares from the deal. Micron expects the deal to add to its earnings on a non-GAAP basis, starting in fiscal 2011.