Toshiba to takeover OCZ in bankruptcy sale
American computer hardware manufacturer OCZ Technology Group Inc. said it had received an offer from Toshiba Corp. to take over the company in a planned bankruptcy proceeding, Reuters reported.
The solid-state hard drive maker currently has a market capitalization of USD43 million. OCZ has not posted any annual profit in five years, the report said.
According to Reuters, OCZ had substantially completed negotiations with Toshiba on the buyout. It expects to file for bankruptcy shortly after closing the deal with the Japanese chipmaker and Hercules Technology Growth Capital Inc.
The report said that OCZ had retained Deutsche Bank AG in August to advice it on its strategic options. The company has long been a takeover target for hard drive makers Seagate Technology Plc and Western Digital Corp. and flash memory maker Micron Technology Inc.
Toshiba announced earlier this year that it was looking to invest USD200 million to USD300 million on new equipment to manufacture NAND flash memory chips, Reuters said.
OCZ will immediately file for bankruptcy and liquidate should it fail to close a deal with Toshiba, the report said.