By James Wells
SYDNEY: The head of the Asian division of Lexar Media claims the company’s $688 million acquisition by Micron Technology has been the right move for both companies.
According to the Singapore-based Lexar Australia, New Zealand, ASEAN and India managing director, Kar Yee Fransham, the Micron deal is a positive one.
“The two companies have had a commercial relationship for sometime, and the companies have extended that relationship,” Fransham told current.com.au.
“The merger is designed to combine Micron’s leadership in NAND flash memory with Lexar’s leadership in NAND controller and card design technology to create a winning combination in the consumer electronics market.
“Becoming part of Micron will help to ensure that Lexar products and technology continue to be a force in the marketplace. Through this combination, we expect to better align our cost structure with market conditions and to increase our development and go-to-market scale in order to compete more effectively in the marketplace,” she said.
“Lexar customers will benefit from Micron’s vertical integration and opportunities for cost synergies that will impact pricing and faster growth in emerging markets.
“Both companies are committed to having resources located across the globe to service customers. At this point it is too early in the process to address the integration of the two companies,” Fransham said.
Fransham did not want to comment on the integration of the two brands at this stage, prior to regulatory and shareholder approval. She also did not want to comment on the operations of Lexar in Australia or the fact that Micron does not have a local office in Australia.
Lexar Australia national sales manager, Garry Boyd, who recently resigned from the company has not been replaced at this stage.
“We are looking carefully for a replacement,” Fransham said.