Pixelworks Announces Definitive Purchase Agreement to Sell its Shanghai Semiconductor Subsidiary to VeriSilicon
Pixelworks (NASDAQ: PXLW) signed a definitive agreement to sell its controlling stake in Pixelworks Semiconductor Technology (Shanghai) to a buyer led by VeriSilicon for an equity value of RMB 950 million (approx. $133 million USD).
After releases of certain repurchase rights, transaction costs and China withholding taxes, Pixelworks expects to receive approximately $50 million to $60 million in cash at closing. The sale requires approval by holders of 67% of Pixelworks common stock and customary closing conditions, and the company aims to close by year‑end 2025. The agreement was unanimously approved by the Pixelworks board.
Pixelworks (NASDAQ: PXLW) ha firmato un accordo definitivo per vendere la sua quota di controllo in Pixelworks Semiconductor Technology (Shanghai) a un acquirente guidato da VeriSilicon per un valore azionario di RMB 950 milioni (circa 133 milioni di USD). Dopo l’erogazione di alcune clausole di riacquisto, costi di transazione e tasse di ritenuta in Cina, Pixelworks si aspetta di ricevere circa 50-60 milioni di USD in contanti al closing. La vendita richiede l’approvazione da parte dei detentori del 67% delle azioni ordinarie di Pixelworks e le consuete condizioni di chiusura, e l’azienda punta a chiudere entro la fine del 2025. L’accordo è stato approvato all’unanimità dal consiglio di Pixelworks.
Pixelworks (NASDAQ: PXLW) firmó un acuerdo definitivo para vender su participación mayoritaria en Pixelworks Semiconductor Technology (Shanghai) a un comprador liderado por VeriSilicon por un valor de capital social de RMB 950 millones (aprox. 133 millones de USD). Tras la liberación de ciertos derechos de recompra, costos de transacción e impuestos de retención en China, Pixelworks espera recibir aproximadamente 50 a 60 millones de USD en efectivo al cierre. La venta requiere la aprobación de titulares del 67% de las acciones comunes de Pixelworks y condiciones de cierre habituales, y la empresa apunta a cerrar antes de finales de 2025. El acuerdo fue aprobado por unanimidad por la junta de Pixelworks.
Pixelworks (NASDAQ: PXLW)가 VeriSilicon이 이끄는 바이어에게 Shanghai에 있는 Pixelworks Semiconductor Technology의 지배지분을 매각하는 확정 계약을 체결했습니다. 주식 가치는 RMB 9억 5천만 위안이며 (약 1억 3300만 달러), 거래의 특정 재매입 권한 해제, 거래 비용 및 중국 원천징수세를 차감한 후 클로징 시 약 5000만~6000만 달러의 현금을 받을 것으로 예상됩니다. 매각은 Pixelworks 보통주 67%의 주주 승인 및 관례적 종결 조건이 필요하며, 회사는 2025년 말까지 마감하는 것을 목표로 합니다. 이 계약은 Pixelworks 이사회에서 만장일치로 승인되었습니다.
Pixelworks (NASDAQ: PXLW) a signé un accord définitif pour vendre sa participation majoritaire dans Pixelworks Semiconductor Technology (Shanghai) à un acheteur dirigé par VeriSilicon pour une valeur d’equity de RMB 950 millions (environ 133 millions de USD). Après la libération de certains droits de rachat, les coûts de transaction et les retenues à la source en Chine, Pixelworks prévoit recevoir environ 50 à 60 millions de USD en espèces à la clôture. La vente nécessite l’approbation des détenteurs de 67% des actions ordinaires de Pixelworks et les conditions de clôture habituelles, et la société vise à clôturer d’ici la fin de 2025. L’accord a été approuvé à l’unanimité par le conseil d’administration de Pixelworks.
Pixelworks (NASDAQ: PXLW) hat eine endgültige Vereinbarung unterzeichnet, um ihren beherrschenden Anteil an Pixelworks Semiconductor Technology (Shanghai) an einen von VeriSilicon geführten Käufer für einen Eigenkapitalwert von RMB 950 Millionen (ca. 133 Millionen USD) zu verkaufen. Nach Freigabe bestimmter Rückkaufsrechte, Transaktionskosten und chinesischer Quellensteuer rechnet Pixelworks damit, zum Abschlusszeitpunkt etwa 50 bis 60 Millionen USD in bar zu erhalten. Der Verkauf erfordert die Zustimmung von Inhabern von 67% der Pixelworks-Stammaktien und übliche Abschlussbedingungen, und das Unternehmen strebt eine Abwicklung bis Ende 2025 an. Der Vertrag wurde vom Pixelworks-Vorstand einstimmig genehmigt.
Pixelworks (NASDAQ: PXLW) وقّعت اتفاقاً حاسماً لبيع حصتها المسيطرة في Pixelworks Semiconductor Technology (Shanghai) إلى مشترٍ يقوده VeriSilicon مقابل قيمة حقوق ملكية قدرها 950 مليون يوان صيني (حوالي 133 مليون دولار أمريكي). بعد الإفراج عن بعض حقوق إعادة الشراء وتكاليف الصفقة والضرائب المستقطعة في الصين، تتوقع Pixelworks تلقي ما يقرب من 50 إلى 60 مليون دولار نقداً عند الإغلاق. البيع يتطلب موافقة حاملي 67% من أسهم Pixelworks العادية وشروط إغلاق اعتيادية، وتطمح الشركة لإغلاق الصفقة بنهاية عام 2025. وقد وافق مجلس Pixelworks بالإجماع على الاتفاق.
Pixelworks（NASDAQ: PXLW） 已签署最终协议，将其在 Pixelworks Semiconductor Technology（Shanghai）的控股权出售给以 VeriSilicon 为首的买家，股权价值为 人民币 9.5 亿元（约 1.33 亿美元）。在释放某些回购权、交易成本及中国预扣税后，Pixelworks 预计在成交时可获得约 5000 万至 6000 万美元的现金。此次出售需要 Pixelworks 普通股股东持有者的 67% 的批准及惯常的成交条件，公司目标在 2025 年底完成。该协议已获得 Pixelworks 董事会全体一致通过。
- Equity value of Pixelworks Shanghai: RMB 950 million
- Estimated cash to Pixelworks at closing: $50M–$60M
- Board unanimously approved definitive purchase agreement
- Target closing timeline: by end of 2025
- Purchase price conversion: approx. $133M but net cash substantially lower
- Deal requires 67% shareholder approval before closing
- Expected deductions include transaction costs and China withholding taxes
Insights
Sale crystallizes value from the Shanghai subsidiary; Pixelworks expects modest net cash proceeds and shareholder approval by year-end.
The company agreed to sell 100% of Pixelworks Shanghai at an equity value of
This transaction converts a foreign subsidiary stake into near-term liquidity while releasing certain repurchase rights via nominal share transfers. Key risks include meeting the
Divestiture simplifies corporate structure, returns limited net cash, and depends on shareholder and regulatory approvals.
Pixelworks is selling its controlling interest in the Shanghai semiconductor subsidiary to a Buyer led by VeriSilicon for an equity value of
The strategic upside comes from de‑risking an overseas operating unit and capturing realizable value now. Execution depends on securing
Pixelworks has further agreed with the other shareholders of Pixelworks Shanghai for a release of certain repurchase rights held by such shareholders in exchange for a transfer of shares of Pixelworks Shanghai for nil or nominal consideration. As a result, net of these transfers, transaction costs and withholding taxes in
President and CEO of Pixelworks, Todd DeBonis, commented, "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. As such, we look forward to receiving approval of the sale by our shareholders in the coming months with the goal of closing the transaction by year end."
The transaction is expected to close by the end of 2025, subject to approval by holders of
About Pixelworks, Inc.
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. Pixelworks has more than 20 years of delivering image processing innovation to leading providers of consumer electronics, professional displays, and video streaming services. For more information, please visit Pixelworks' web site at www.pixelworks.com.
Note: Pixelworks and the Pixelworks logo are trademarks of Pixelworks, Inc.
Forward-Looking Statements
This press release contains "forward-looking statements" that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release are forward-looking statements. Examples of such statements include, but are not limited to, statements regarding the closing of the sale of Pixelworks Shanghai and the expected timing thereof; the satisfaction of closing conditions with respect to the sale, including approval by Pixelworks' shareholders; the expected amount of net proceeds from the sale; and Pixelworks' expectations regarding the use of net proceeds from the sale. We may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking statements. Such statements are based on management's current expectations and understandings and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, market and other conditions and other factors described in this press release and in our other filings with the Securities and Exchange Commission (the "SEC") from time to time. We disclaim any intent or obligation to update these forward-looking statements to reflect events or circumstances that exist after the date on which they were made, except as required by law. You should review additional disclosures we make in our filings with the SEC, including our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and current reports and other documents that we have filed or may file in the future. You may access these documents for no charge at http://www.sec.gov.
No Offer or Solicitation
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval.
Additional Information and Where to Find It
In connection with the proposed sale of its shares of Pixelworks Shanghai, Pixelworks expects to file with the SEC a definitive proxy statement (DEFM14A) on Schedule 14A (the "Definitive Proxy Statement"). After a Definitive Proxy Statement is filed, Pixelworks will send the Definitive Proxy Statement to its shareholders. This press release is not a substitute for the Definitive Proxy Statement or for any other document that Pixelworks may file with the SEC and send to its shareholders in connection with the proposed sale.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ CAREFULLY THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Free copies of the Definitive Proxy Statement (when available), as well as other filings containing information about Pixelworks and the proposed sale of Pixelworks Shanghai, may be obtained at the SEC's Internet site (http://www.sec.gov). You will also be able to obtain the documents filed with the SEC by Pixelworks, free of charge, in the "Investors" section of our website, www.pixelworks.com, under the heading "Investors - SEC Filings" or by requesting them in writing or by telephone from Pixelworks at: 16760 SW Upper Boones Ferry Rd. Suite 101,
Participants in the Solicitation
Pixelworks and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Pixelworks in connection with the proposed sale of Pixelworks Shanghai. Information about the directors and executive officers of Pixelworks is set forth in the proxy statement for Pixelworks' 2025 annual meeting of shareholders, as filed with the SEC on Schedule 14A on April 21, 2025. Additional information regarding the interests of those participants and other persons who may be deemed participants may be obtained by reading the Definitive Proxy Statement and other relevant documents regarding the proposed sale filed with the SEC when they become available. Copies of these documents may be obtained free of charge from the sources described above.
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SOURCE Pixelworks, Inc.
FAQ
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