Pixelworks to acquire ViXS Systems
Pixelworks and Toronto-based ViXS Systems announced that the companies have entered into a definitive agreement under which Pixelworks will acquire all of the outstanding common shares of ViXS in an all-stock transaction consisting of approximately 3.7M shares of Pixelworks common stock valued at approximately $20.2M. At the effective closing date, each share of ViXS will be exchanged for 0.04836 of a share of Pixelworks' common stock. The exchange ratio is equivalent to consideration of 26c per ViXS common share, based on the closing price of Pixelworks on May 17, 2017. Based on a 60-day trailing average stock price for Pixelworks of $4.65 per share and 15c per share for ViXS, the transaction represents a premium of approximately 47.7%. Pixelworks expects the transaction to be accretive to its full-year 2018 earnings per share. The transaction is expected to close in the third calendar quarter of 2017.