(Associated Press via NewsEdge) A majority of Lexar Media shareholders approved the flash memory card maker's acquisition by Micron Technology in a sweetened, all-stock deal valued at about $801 million.
The approval clears the way for a merger that could strengthen memory-chip maker Micron, as it gains Lexar's consumer products business and patent portfolio.
Investors representing more than 50% of Lexar shares approved the deal, Lexar spokesman Michael Scarpelli said.
The outcome will likely stay the same after a certification process, he said.
Flash memory is the storage component commonly found in digital cameras, music players, keychain storage devices and a variety of other electronics. Industry sales worldwide are expected to reach $13.5 billion this year, up from $10.6 billion in 2005.
With the acquisition, Micron will be able to offer a more complete package of flash products, said spokesman Daniel Francisco.
'Together with our NAND designs, technology, manufacturing capability and distribution channels, Micron is in a strong position to serve the flash storage requirements of the consumer electronics and enterprise segments,' he said.
Boise, Idaho-based Micron, the world's fifth largest flash memory maker in 2005 according to market researcher IDC, also teamed up last year with chip maker Intel in a joint venture to better compete in the fast-growing NAND flash memory market.
Under the Micron-Lexar deal, Lexar shareholders will trade each one of their shares for .5925 of Micron stock. Micron's initial bid in March was 5.3% lower at an exchange ratio of .5625.
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