PORTLAND, Ore., Aug. 18,
2022 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW)
(the "Company"), a leading provider of innovative video and display
processing solutions, today announced that it entered into an
Equity Transfer Agreement with a group of private equity investors
based in China ("Purchasers") for
a portion of the Company's equity interest in its majority owned
subsidiary, Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. ("PWSH"). Collectively,
the Purchasers have agreed to pay amounts in RMB equivalent to
approximately $12.9 million USD in
exchange for a minority equity interest of 2.73% in PWSH. The
purchase price values PWSH at RMB 3.2
billion or approximately $471.5
million USD. Following the closing of the transaction, which
is expected in September of 2022, Pixelworks will continue to hold
an 80.87% equity interest in its PWSH subsidiary.
President and CEO of Pixelworks, Todd
DeBonis, commented, "As demonstrated by this transaction
representing nearly 2x the valuation of the previous investment
round in August 2021, there is
significant interest in both our visual processing technology and
the growing market opportunity for our PWSH subsidiary. We believe
this strategic investment by established private equity investors
in China will serve to further
support PWSH's momentum with an expanding number of mobile OEM
customers and ecosystem partners in Asia."
Further details about the transaction are available in the Form
8-K filed by the Company today with Securities and Exchange
Commission.
About Pixelworks
Pixelworks provides industry-leading content creation, video
delivery and display processing solutions and technology that
enable highly authentic viewing experiences with superior visual
quality, across all screens – from cinema to smartphone and beyond.
The Company has a 20-year history of delivering image processing
innovation to leading providers of consumer electronics,
professional displays, and video streaming services. For more
information, please visit the company's web site at
www.pixelworks.com.
Note: Pixelworks and the Pixelworks logo are trademarks of
Pixelworks, Inc.
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SOURCE Pixelworks, Inc.