© rawpixelimages dreamstime.com
Business |
Pixelworks to sell 7% stake to Chinese investors
Pixelworks says it has entered into a Securities Purchase Agreement with MTM-Xinhe Investment Limited, a consortium of investors from the Chinese semiconductor and mobile eco-system, under which Pixelworks would issue and sell in shares representing about 7% of the company's outstanding shares for USD 6.6 million dollars.
As a shareholder of Pixelworks, MTM-Xinhe Investment Limited intends to leverage its resources and relationships to help Pixelworks establish new strategic partnerships, expand its mobile visual processor customer base, rapidly grow its business in China, as well as offer potential future investment support, a press release reads.
"This investment by MTM-Xinhe serves as further validation of the interest and expanding opportunity for our technology in the China market, while underscoring our strategic growth initiatives focused on this region to drive our future success. Additionally, having a domestic investment firm hold a meaningful equity position will further enhance our customer relationships with local OEMs and ODMs as well as encourage additional local support of Pixelworks China operations," says President and CEO of Pixelworks, Todd DeBonis.
The transaction is expected to close in November of 2020.
