Business
Pixelworks Announces Investment by Strategic Investors in China
SAN JOSE, Calif., Oct. 22, 2020 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW) (the "Company"), a leading provider of innovative video and display processing
About this update from Pixelworks, Inc.
[{"type":"text","content":"SAN JOSE, Calif., Oct. 22, 2020 /PRNewswire/ -- Pixelworks, Inc. (NASDAQ: PXLW) (the \"Company\"), a leading provider of innovative video and display processing solutions, today announced that on October 19, 2020 it entered into a Securities Purchase Agreement with MTM-Xinhe Investment Limited, a consortium of strategic investors from the Chinese semiconductor and mobile eco-system, pursuant to which Pixelworks would issue and sell in a private placement 3,200,000 shares of its common stock, representing approximately 7% of Pixelworks' outstanding shares, in exchange for approximately $6.6 million dollars. The transaction is expected to close in November of 2020.\nAs 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.\nPresident and CEO of Pixelworks, Todd DeBonis, commented, \"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.\"\nFurther details about the transaction, including a complete copy of the agreement, are available in the Form 8-K filed by the Company today.\nAbout MTM-Xinhe Investment LimitedMTM-Xinhe Investment Limited is a consortium of strategic investors from the Chinese semiconductor and mobile eco-system with deep industry experience, relationship and expertise. These investors have invested in a broad portfolio of companies including handset OEM/ODM, PMIC, IMU, ISP, ToF Sensor and MEMS devices. The fund management team consists of investment professionals and technology experts from the semiconductor industry, research institutions, and Tsinghua University, with more than ten years of experience in M&A and post-investment management of cross-border semiconductor projects, having led and participated in global M&A transactions such as the publ...