Spansion has acquired Saifun, its partner in the development of the Mirrobit flash memory technology which is used for most of Spansion’s product line, for $368m.
“The combination will expand Spansion's product portfolio, and enable Spansion's immediate entry into the technology licensing business,” said a Spansion statement. The firm added that the agreement will “drive adoption of MirrorBit beyond the NOR segment, into new markets including NAND, DRAM, and systems on a chip, accelerate and diversify Spansion's product roadmap through the addition of Saifun's engineering team, and expand operating margins”.
"We look forward to collaborating with them to serve Saifun's existing licensees, and enter new markets with a powerful technology licensing strategy and a broadened and diversified product portfolio,” said Bertrand Cambou, president and CEO of Spansion.
Since 2002, Spansion has been a licensee of Saifun's NROM technology used in MirrorBit technology which represents nearly a quarter of the NOR flash memory segment, generating annual revenues of nearly $2bn.
“We will continue to support all of our existing licensees with the same commitment and dedication as before. We are certain that the addition of the Spansion IP and manufacturing know-how will only accelerate all programs," said Boaz Eitan, CEO of Saifun Semiconductor.
Eitan, with his affiliates, owns about 35 per cent of Saifun’s shares, and has agreed to vote all of these shares in favour of the transaction.