Pixelworks to sell Shanghai subsidiary to VeriSilicon
Pixelworks has entered into a definitive agreement to sell its shares in Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. to a special purpose entity led by VeriSilicon Microelectronics (Shanghai) Co., Ltd.
The transaction values the Shanghai subsidiary at RMB 950 million (approximately USD 133 million). After accounting for share transfers, transaction costs, and withholding taxes in China, Pixelworks expects to receive between USD 50 million and USD 60 million in cash upon closing.
According to the company, the sale follows a strategic review process and aims to “capture the maximum realisable value” for all shareholders.
“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 realisable value for all of the Pixelworks Shanghai shareholders,” said Pixelworks President and CEO Todd DeBonis, in a press release.
The deal requires approval from holders of at least 67% of Pixelworks’ outstanding common stock and is expected to close by the end of 2025, pending customary closing conditions.