2023-06-13 09:40:43 ET
SMART Global ( NASDAQ: SGH ) through its wholly owned subsidiary SMART Modular Technologies will sell an 81% interest in SMART Modular Technologies do Brasil – Indústria e Comércio de Componentes to Lexar Europe, an affiliate of Shenzhen Longsys Electronics for ~$166M in cash consideration.
The purchase price values 100% of SMART Brazil at an initial enterprise value of $205M. This amount has two separate components, an upfront value of $170M and a deferred value of $35M.
At closing, SGH will receive an upfront cash purchase price of $137.7M for 81% of SMART Brazil’s outstanding equity. Eighteen months following the closing SGH will receive a deferred cash payment of $28.35M (81% of $35M).
In addition to the upfront and deferred cash payments, SGH will retain a 19% interest in SMART Brazil.
The transaction is expected to close by the end of calendar year 2023.
SGH expects this transaction to be accretive to its non-GAAP gross margins immediately post-closing; for reference, sales for SMART Brazil were ~$114M for H1 SGH's fiscal 2023.
For further details see:
SGH will sell 81% in SMART Modular Brazil