Pixelworks, Inc. (PXLW), a provider of video and display processing solutions, said on Wednesday that it has inked a deal to sell its subsidiary, Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. to a special purpose entity led by VeriSilicon Microelectronics (Shanghai) Co., Ltd. for RMB 950 million.
Pixelworks has further agreed with other shareholders of Pixelworks Shanghai for a release of certain repurchase rights. Post transaction, Pixelworks expects to receive cash of around $50 to $60 million.
Todd DeBonis, CEO of Pixelworks, said: "This executed definitive agreement to sell the company's controlling interest in our Pixelworks Shanghai subsidiary is the result of our previously communicated, extensive strategic review process. We believe the proposed transaction represents the optimal path forward for Pixelworks, Inc., as well as the Pixelworks Shanghai business, while also capturing the maximum realizable value for all of the Pixelworks Shanghai shareholders."
The transaction is expected to be closed by the end of 2025.
PXLW was down by 32.35% at $10.12 on the Nasdaq.
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