SK Hynix and Intel have signed an agreement, under which SK Hynix would acquire Intel’s NAND memory and storage business for $9 billion.

The transaction includes the NAND SSD business, the NAND component and wafer business, and the Dalian NAND memory manufacturing facility in China. Intel will retain its Intel Optane business.

SK Hynix and Intel will endeavor to obtain required governmental approvals expected in late 2021, say the companies. Per the agreement, Intel will continue to manufacture NAND wafers at the Dalian Memory Manufacturing Facility and retain all IP related to the manufacture and design of NAND flash wafers until the final closing.

Intel says it intends to invest transaction proceeds to deliver leadership products and advance its long-term growth priorities, including artificial intelligence, 5G networking and the intelligent, autonomous edge.

Citi served as financial advisor and Skadden, Arps, Slate, Meagher & Flom, K&C and Fangda Partners served as legal counsel to SK hynix. BofA Securities served as financial advisor and Munger, Tolles & Olson, Wilmer Cutler Pickering Hale and Dorr, Linklaters and Bae, Kim & Lee served as legal counsel to Intel.

You can find more information on the transaction in a FAQ sheet released by Intel.

[Image courtesy: Intel]