Micron Technology Inc. (NASDAQ: MU), a maker of flash memory products, will buy bankrupt Japanese chipmaker Elpida Memory Inc. for 200 billion yen ($2.5 billion) to bolster its mobile portfolio.
Under the terms of the agreement, Boise, Idaho-based Micron will pay 60 billion yen in cash at the completion of the transacation, while the remaining 140 billion yen will be paid to Elpida's creditors in future annual installments through 2019.
Yukio Sakamoto, co-trustee of Elpida said Micron's sponsorship of Elpida will "enable stable payment of creditor claims and help to streamline approval of the reorganization plan by the creditors and the Tokyo District Court."
Elpida filed for bankruptcy protection in February after prices of DRAM chips plunged, leading the maker of computer-memory chips to post a fifth consecutive quarter of losses.
Micron also agreed to purchase 24 percent stake of Rexchip Electronics Corp. from Taiwanese firm Powerchip Technology Corp. for roughly $334 million.
Elpida's assets include a 65 percent ownership interest in Rexchip and that Micron will control roughly 89 percent of Rexchip's shares.
Both the deals are expected to close in the first half of calendar 2013.
MU stock, which has been trading between $3.97 and $9.16 over the past year, closed Friday's regular trading at $6.31. In Monday's premarket, shares rose 1.74 percent.