Intel and ST name new flash JV 'Numonyx'

By Colleen Taylor, Contributing Editor -- Electronic News, 7/20/2007

Semiconductor industry heavyweights Intel Corp.  and STMicroelectronics, along with private equity firm Francisco Partners, have named their upcoming independent flash joint venture (JV) "Numonyx."

The companies first announced plans for the joint venture in May. Numonyx will focus on supplying non-volatile memory solutions for a variety of consumer and industrial devices.

According to its founding companies, the JV's name plays off the word "mnemonics," which means the art of assisting or improving memory.

"We want the industry to see that we are already hard at work to create a significant, agile and energetic new company and what better way to convey that than to give it a name," Brian Harrison, VP and general manager of Intel's flash memory group and CEO-designate for Numonyx, said in a statement. "We are proceeding to our original timeframes and will be excited when we can officially launch the new company to our customers later this year."

Under the terms of the agreement announced in May, ST will sell its flash memory assets, including its NAND joint venture interest and other NOR resources, to the new company, while Intel will sell its NOR assets and resources. In exchange, Intel will receive a 45.1 percent equity ownership stake and a $432 million cash payment at close. ST will receive a 48.6 percent equity ownership stake and a $468 million cash payment at close. Francisco Partners will invest $150 million in cash for convertible preferred stock representing a 6.3 percent ownership interest, subject to adjustment in certain circumstances, the companies said.

Numonyx is expected to complete its transaction, subject to regulatory approvals and customary closing conditions, in the second half of 2007, the companies said. The new entity will be headquartered in Switzerland.