SANTA CLARA, Calif.--(BUSINESS WIRE)--
Violin Memory®, Inc., (VMEM), a leading provider of all-flash storage arrays and appliances delivering application solutions for the enterprise, today announced that it has entered into a definitive agreement to sell its PCIe product line to SK hynix Inc. for approximately $23 million in cash and the assumption of certain liabilities totaling $0.5 million. This sale is consistent with the Company’s previously announced plan to review strategic alternatives for its PCIe flash memory card business in order to focus on markets where Violin has proven technology leadership and significant growth opportunities.
The sale of the PCIe product line will include its Velocity PCIe card family, consisting of PCIe-related intellectual property, and certain fixed assets. Under the agreement, SK hynix will extend offers of employment to members of the PCIe development team. The purchase price is subject to a downward adjustment to the extent certain conditions are not satisfied. Closing of the transaction, which is subject to customary closing conditions, is expected to occur by the end of June.
Additional information about the sale of our PCIe product line will be provided during the Company’s first quarter fiscal 2015 financial results conference call on May 29, 2014.
About Violin Memory, Inc.
Business in a Flash. Violin Memory transforms the speed of business with high performance, always available, low cost management of critical business information and applications. Violin’s All Flash optimized solutions accelerate breakthrough CAPEX and OPEX savings for building the next generation data center. Violin’s Flash Fabric Architecture™ (FFA) speeds data delivery with chip-to-chassis performance optimization that achieves lower consistent latency and cost per transaction for Cloud, Enterprise, and Virtualized mission-critical applications. Violin's All Flash Arrays and Appliances, and enterprise data management software solutions enhance agility and mobility while revolutionizing data center economics. Founded in 2005, Violin Memory is headquartered in Santa Clara, California. For more information, visit www.violin-memory.com. Follow us on Twitter at twitter.com/violinmemory.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Violin Memory’s anticipation that it will complete the sale of the PCIe product line and take any related actions by the end of June 2014. These forward-looking statements are subject to risks and uncertainties, including but not limited to Violin’s inability to satisfy its closing conditions at all or in a manner that does not result in a reduction to purchase price, and the parties failing to consummate the transaction. Additional risks and uncertainties that could affect Violin Memory's business performance and financial results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in Violin Memory's annual report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission, and which is available on the Violin Memory's investor relations website at investor.violin-memory.com and on the SEC's website at www.sec.gov. All forward-looking statements in this public announcement are based on information available to Violin Memory as of the date hereof, and Violin Memory does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
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