Pixelworks to make strategic investment in Shanghai subsidiary
Pixelworks, a provider of video and display processing solutions, has entered into an Equity Transfer Agreement with a group of private equity investors based in China for a portion of the company's equity interest in its majority-owned subsidiary, PWSH.
Collectively, the Purchasers have agreed to pay amounts in RMB equivalent to approximately USD 12.9 million in exchange for a minority equity interest of 2.73% in PWSH. The purchase price values PWSH at RMB 3.2 billion or approximately USD 471.5 million. 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.
"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," says President and CEO of Pixelworks, Todd DeBonis, in a press release.