Micron Tech buys fellow memory chip maker Numonyx

Micron Technology (MU) announced last night that it had agreed to buy NOR flash memory chip maker Numonyx Holdings for $1.27 billion in Micron stock. Micron will issue 140 million shares to the holders of Numonyx (Numonyx is owned 45% by Intel, 49% by STM and 6% by Francisco Partners). Micron will also issue the holders up to an additional 10 million shares depending on the price of MU shares over the 20 trading days ending two days before the deal closes.The deal is expected to close in 3-6 months. Micron expects the deal to be positive to the company on free-cash flow and non-GAAP earnings beginning in fiscal year 2011.