Toshiba aqcuires OCZ Assets for $35 milion.
Following last week’s news of OCZ’s bankruptcy filing, it’s now official that Toshiba is acquiring OCZ’s assets for $35 million cash. The agreement includes all of OCZ’s client and consumer SSD business (controller IP, firmware, software and employees) and the acquisition is expected to be completed within the next 60 days. Unfortunately there is no official word on the fate of OCZ’s other product groups (such as power supplies and cooling).
The acquisition agreement includes a condition that Toshiba must provide OCZ with sufficient DIP (Debtor-in-Possession) financing in order for OCZ to keep the business going for the time being. In other words, OCZ’s will continue to do business as normally but the press release doesn’t reveal anything about what happens when the acquisition is completed. OCZ did tell us that warranties will be honored and their support status will remain unchanged but I’m waiting for OCZ to confirm that this also applies to the post-acquisition period (i.e. Toshiba would take responsibility of OCZ’s warranties).
For someone like Toshiba, $35 million is a drop in the ocean. Compared to OCZ’s current market cap ($7.68M), even $35 million is a good deal but bear in mind that back in 2011 OCZ paid $32 million for Indilinx alone. Now Toshiba is getting OCZ along with the former Indilinx and PLX for about the same price. It doesn’t help that a little over year ago when OCZ acquisitions rumors were at their hottest, I heard figures of up to $1 billion being offered to OCZ but the company turned down the offers. It’s easy to say now but OCZ should have struck while the iron was hot.
Either way, I’m eagerly waiting to see how the acquisition will play out. I doubt we will see the OCZ brand any longer, but it will be interesting to see OCZ’s influence on Toshiba’s future SSDs.
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