Taiwanese IC backend service provider Powertech Technology and US-headquartered NOR flash memory maker Spansion announced on August 25 that they have signed an agreement for Powertech to acquire Spansion's chip testing and packaging plant in Suzhou, China, Economic Daily News of Taiwan reported. Counting in operating capital, the overall value of this transaction is estimated at US$51 million, US$31 million of which will be paid in cash over a period of six months following the closing of the deal, and Spansion will transfer 100% stake in the holding company of the Suzhou plant to Powertech. As per the agreement, Powertech will continue to provide final manufacturing services to Spansion at the Suzhou plant.