Micron Technology Inc is selling its Boise, Idaho display division to Pixtech Inc, for around $11m. Under terms of the all-stock deal, Micron will get 7,134,000 shares and an option to buy a further 310,000 and will end up owning around 32% of Pixtech shares.
Micron, which wants to concentrate on its core chipmaking operations, will pass over to PixTech its display assets including manufacturing equipment, around $4.3m in cash and some unquantified liabilities.
As a specialist in Field Emission Display (FED) technology, PixTech is faced with a formidable array of competitors including Sony, Fujitsu, Samsung, Candescent and FED Corporation. A merger with MicronÆs Display Division will, according to PixTechÆs president and CEO, Dieter Mezger, create a US-based R&D organization devoted solely to FED.
PixTech and Micron claim to be the first two companies to develop color video FED display and by moving its Santa Clara, California-based team to Boise, PixTech hopes to make best use of both companies’ strengthens and their combined patent portfolio.
However, with the market for FED displays still in its infancy, PixTechÆs recent results have been far from impressive. Earlier this month it revealed that losses last year rose from $14.6m to $17.8m on revenues which declined 4.3% to $3.6m.
