In June this year, Micron confirmed the obvious - the production of flash cards and USB-drives became a little-profitable occupation and it is necessary to focus on the main thing. For example, in the production of memory chips and SSD. Micron reported that they will try to find a buyer for the brand Lexar and assets or, if necessary, will lead a partner for this business.
The brand Lexar and related assets, Micron sold to the Chinese company Longsys Electronics. This is a well-known manufacturer of memory cards, card readers, USB-drives and SSD in the Middle Kingdom. The company Longsys was established 18 years ago and during this time has become a major player in the market of flash drives. To date, the annual supply of products under the brand Longsys have reached 100 million units in the average annual calculation.
The purchase price is not disclosed. In 2006, when Micron bought the company Lexar Media, it made a deal for $ 688 million (mainly through the exchange of shares). Then, by the way, for Lexar, a serious struggle broke out between Micron and SanDisk. Shareholders of Lexar wanted more money for the company's shares, and they eventually demanded them. The company Micron has successfully used the heritage of Lexar for eleven years, but all good things ever come to an end. Now this brand will be used by the Chinese.
Purchase of tangible and intangible assets Lexar will allow Longsys Electronics (based in Shenzhen) to enter new geographical markets and fill a new niche for itself. It is understandable that Longsys has aimed at Western markets and, above all, the markets of the US and Canada. It is unlikely that the brand Lexar was popular in China.