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Micron to buy Numonyx for $1.27 billion

One of the world's largest flash memory makers agrees to be acquired by Micron Technology in a deal worth approximately $1.27 billion.

Micron Technology is beefing up its flash memory chip portfolio by acquiring Numonyx, one the largest makers of flash in the world.

Micron and Numonyx said Tuesday that they have reached an agreement whereby Micron will acquire Numonyx in an all-stock transaction valued at approximately $1.27 billion.

Numonyx was created by Intel and STMicroelectronics back in 2008 and combined Intel's NOR flash memory business and STMicro's NAND flash business.

Micron is the largest memory chip manufacturer in the U.S., and Geneva-based Numonyx is the world's largest supplier of NOR flash--which has different applications than NAND flash, which Micron already manufactures. NAND is used for data storage in mobile devices such as Apple's iPhone and its upcoming iPad, while NOR has traditionally been used in cell phones.

"Acquiring Numonyx...positions Micron to offer the most comprehensive, cost-competitive solutions in the industry," Steve Appleton, chairman and CEO of Micron, said in a statement. The transaction will allow Micron offer "a broad portfolio of DRAM, NAND and NOR memory products," according to a company statement. Micron would also increase the size of its global manufacturing footprint and gain access to Numonyx's customer base.

The transaction is subject to regulatory review and is expected to close within three to six months.