Micron Technology Inc. on Wednesday announced a deal to acquire flash memory maker Lexar Media Inc. for stock in a deal valued at about $688 million.
Under the transaction, Lexar shareholders will receive 0.5625 share of Micron for each share held, an 18 percent premium to Lexar's closing price of $7.09 Tuesday. Lexar shares surged on the news, gaining $1.05, or 14.8 percent, to $8.14 in electronic premarket trading.
Boise, Idaho-based Micron said acquiring Lexar will boost its position in the flash memory market and broaden its portfolio of memory chips for computers and electronic devices. Lexar lists Wal-Mart Stores Inc. as one of its larger customers.
Shares of Micron lost 33 cents, or 2.2 percent, to $14.65 in early activity.