Apple is reportedly in talks with Bain Capital to take an equity stake in its bid to acquire Toshiba Corporation's semiconductor business. Once Apple and Bain Capital reach the final deal, the iPhone maker might be shedding more than US$3bn in financial support, an amount that is bigger than it spent for the acquisition of Beats Electronics in 2014.
Toshiba and Bain Capital are expected to reach a final agreement later this month for the acquisition of the Japanese conglomerate's chip unit. Bloomberg reports its sources familiar with the matter said Apple will be contributing more than US$3bn in a Bain-led group of buyers composed of Dell, Seagate Technology and SK Hynix.
Sources also said Apple's support convinced Toshiba to enter a memorandum of understanding with Bain. Western Digital, an Apple supplier, is Bain's competitor in this venture. Apple's equity stake is expected to be bigger than US$3bn, the value of Beats when Apple bought it in 2014.
Bain and Toshiba reached an agreement for US$18bn. Apple's contribution will help offset the gap left by Innovation Network Corp of Japan (INCJ) and Development Bank of Japan (DBJ). Both companies withdrew their support from Bain amidst the lawsuit Toshiba is facing with Western Digital.
Bain's managing director in Japan, Yugi Sugimoto, has been working on winning Apple's support. Although is now strategically in the position to score the dale with Toshiba, it remains a mystery if the conglomerate will award the chip unit to the Bain-led group since there are other bidders at play.