The investors of Micron Technology don't look impressed by the recent acquisition of Numonyx as the shares of Micron fell sharply early Wednesday.

Micron's stock was down 5.4% in early trading, a day after Micron, is the largest U. S. maker of main memory chips used in PCs and other electronics, has agreed to buy Numonyx, a flash memory chip maker that has been working on a universal memory chip which combines the best features of multiple types of memory chips, in an all stock transaction.

Micron Technology Inc. announced late on Tuesday that it will acquire Numonyx Holdings BV in an all stock transaction costing the company approximately $1.27 billion. Micron is planning to issue 140 million shares to Numonyx shareholders.

Micron, embedded and mobile markets focused memory maker, would expectedly to gain increased manufacturing scale globally after the acquisition. The deal will allow Micron to use the various locations which Numonyx currently has. Numonyx has locations in areas including the United States, Israel, Singapore, China, and Italy.

"Acquiring Numonyx brings together two memory leaders and positions Micron to offer the most comprehensive, cost-competitive solutions in the industry to a broad range of customers and end-markets," Steve Appleton, chairman and CEO of Micron, said in a statement.