Toshiba Rescues OCZ From Bankruptcy With $35M Buyout
Toshiba, the original developer of NAND and NOR flash, said it will incorporate OCZ's client base and enterprise solid-state drive business into its own.Financially troubled solid-state storage maker OCZ Technology confirmed Dec. 2 that it is selling its assets to Toshiba for $35 million after announcing last week that it would file for bankruptcy. Toshiba, the original developer of NAND and NOR flash back in the late 1980s, said it will be incorporating OCZ's client base and enterprise solid-state drive business into its own, and that the sale is expected to close in January. OCZ's stock was selling for 16 cents on Dec. 3. The San Jose, Calif.-based company had received $13.1 million in debt funding three months ago. Its main products are its 2.5-inch Agility flash drives and the VeloDrive PCI-Express Solid-State Drive. Previously, OCZ flash drives for desktop and laptops, power supplies, cooling products, and peripherals.
Eleven-year-old OCZ had taken a total of $47 million in venture funding over the years and been losing more than $100 million a year for the past couple of years. It had only about $70 million in total assets left, storage analyst Howard Marks wrote in his blog.