Pixelworks, a leading provider of innovative video and display processing solutions, announced the successful closing of the sale of its Shanghai Semiconductor subsidiary to VeriSilicon.
The transaction resulted in cash proceeds of approximately $51 million USD for Pixelworks, bolstering its financial resources.
Additionally, about $1.2 million USD is being held in an escrow account pending the resolution of specific tax matters in China.
Transaction Closed
The sale of Pixelworks' Shanghai Semiconductor subsidiary has been finalized, generating $51 million USD in cash proceeds for the company's coffers.
Escrow Account
Approximately $1.2 million USD is held in an escrow account, potentially released upon settling the outstanding tax issues.
Release of Repurchase Rights
Previous shareholders' repurchase rights related to Pixelworks Shanghai have been fully released, signifying a complete transfer of ownership.
- Pixelworks' divestiture of its Shanghai Semiconductor subsidiary infuses significant cash into its balance sheet, strengthening its financial standing and liquidity position.
- The final release from the escrow account post-tax resolution will impact Pixelworks' net proceeds from the sale.
Pixelworks' strategic move to sell its Shanghai Semiconductor subsidiary not only enhances its financial flexibility with the immediate cash influx but also signals a focus on core video and display processing business. The resolution of tax matters will unlock additional funds from the escrow account, further fortifying Pixelworks' financial resilience.