OCZ to Buy SSD Controller Maker Indilinx for $32 Million in Stock

In a surprising turn of events, OCZ Technology has just announced that it has signed a definitive agreement to acquire Indilinx, a company well known for its high performance solid state drive controllers and software. Indilinx will get $32 million worth of OCZ common stock from this buyout.

Before SandForce released its first generation SSD processors, Indilinx was regarded as the leading maker of solid state drive controllers, since it was the only company able to compete with Intel's X25-M product line.

Indilinx was also OCZ's first partner, when they entered the solid state drive market, and its Barefoot controller powered the first Vertex SSDs to hit the market.

“This transaction is an important step in OCZ's strategy and significantly enhances our ability to capitalize on the worldwide demand for Solid State Drives,” said Ryan Petersen, CEO of OCZ Technology Group.

“This combination brings together two organizations that are committed to advancing solid state drive design, and provides a unique opportunity for OCZ to increase both customer and shareholder value as well as expand our reach into embedded markets.”

The press release, sent out by OCZ, goes to mention that the deal also includes approximately 20 patents and patent applications held by Indilinx as well as the company's Tinkerbell controller.

This is a high-performance eMMC 4.4x controller that replaces SSDs in consumer electronic devices such as smartphones, tablet PCs, GPS units, and netbooks and could bring OCZ a huge advantage in the mobile market.

In addition, OCZ's acquisition of Indilinx should also speed up the development of the JetStream SATA 6Gbps controller that will go inside high-end desktop and laptop SSD units.

According to OCZ, the company plans to continue utilizing controllers from other manufacturers including long-term partner SandForce, while Indilinx will continue to produce and supply its line of controller products to third party SSD manufacturers and OEMs.

The transaction has been approved by the board of directors of each company and is expected to close in mid-April.