Violin Memory Sells PCIe Product Line to SK Hynix
For $23 million in cash
This is a Press Release edited by StorageNewsletter.com on May 30, 2014 at 2:56 pmViolin Memory, Inc. has entered into a definitive agreement to sell its PCIe product line to SK Hynix Inc. for approximately $23 million in cash and the assumption of certain liabilities totaling $0.5 million.
This sale is consistent with the company’s previously announced plan to review strategic alternatives for its PCIe flash memory card business in order to focus on markets where Violin has technology leadership and growth opportunities.
The sale of the PCIe product line will include its Velocity PCIe card family, consisting of PCIe-related intellectual property, and certain fixed assets.
Under the agreement, SK Hynix will extend offers of employment to members of the PCIe development team.
The purchase price is subject to a downward adjustment to the extent certain conditions are not satisfied.
Closing of the transaction, which is subject to customary closing conditions, is expected to occur by the end of June.
Comments
Violin Memory wanted to get rid of its PCIe card activity as the company does not use these storage components into all-flash array but rather thousands of flash dies based on its Flash Memory Fabric technology based on all silicon system approach with patented flash optimization algorithms implemented in hardware, operating at line rate.
On its side, NAND flash chip maker SK Hynix will probably add PCIe flash cards - competing with some customers - to its portfolio.
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