Micron Technology and Inotera Memories have signed an agreement for Micron to acquire Inotera's remaining shares for consideration worth NT$30 (approximately US$0.92) per share, according to the US memory chipmaker.

Micron currently owns approximately 33% of Inotera. This represents a transaction value of approximately US$3.2 billion, net of cash and debt at Inotera, to acquire the remaining equity.

"We believe this is a compelling combination for both companies' shareholders and employees," said Micron CEO Mark Durcan, in a statement. "The acquisition is the culmination of a highly successful seven year partnership with Inotera. It enables Micron to realize the full financial and operational benefit of Inotera's operations and provides a strong future for Inotera and its employees, who will become an even more critical part of Micron's success."

Micron purchases 100% of Inotera's DRAM output, representing approximately 35% of Micron's total DRAM production. Inotera is expected to be fully deployed on Micron's leading-edge 20nm technology by the middle of 2016. Inotera had net cash of approximately US$0.9 billion as of its latest fiscal quarter ending September 30, 2015.

Taiwan's Formosa Group companies, including Nanya Technology, currently own approximately 32% of Inotera. Of this group, entities holding approximately 31% of Inotera are expected to enter into voting agreements in support of the transaction.

Micron expects to finance the approximate US$4 billion for the remaining equity ownership interest in Inotera with approximately US$2.5 billion of debt, up to US$1 billion of Micron equity to Nanya and cash from Micron's balance sheet. Micron can terminate the transaction if it is unable to secure the US$2.5 billion of debt on satisfactory terms.

This transaction is subject to the completion of certain additional agreements, approval by Inotera shareholders, regulatory approvals and other customary closing conditions, Micron indicated. The companies expect the transaction to close in the middle of 2016.

Also in a separate statement, Micron announced the company has entered into a memorandum of understanding (MoU) to grant Nanya an option to license Micron 1x and 1y DRAM technologies. This new license agreement is in addition to Micron's existing license agreement for 20nm technology with Nanya.

Under the license agreements contemplated by the memorandum, in each case when Nanya exercises its option to license the 1x or 1y technology and subject to the satisfaction of certain conditions, Micron will receive an equity stake in Nanya and also royalties based on revenues from products implementing the technology - subject to an agreed cap. The new licenses are limited to a specific facility footprint, are subject to an overall quarterly cap on production, are not transferrable and terminate upon a change of control of Nanya. The new licenses do not impact the existing 20nm DRAM technology agreement between Micron and Nanya.