SMART Global Divests 81% Stake In Brazil-Based Unit For $166M In Cash
Portfolio Pulse from Nabaparna Bhattacharya
SMART Global Holdings (NASDAQ:SGH) is divesting an 81% stake in its Brazil-based unit, SMART Brazil, to Lexar Europe for $166 million in cash. The deal will allow SGH to focus on delivering high-performance solutions to enterprise customers and strengthen its financial position for strategic investments.
June 13, 2023 | 12:38 pm
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SMART Global Holdings is selling an 81% stake in SMART Brazil to Lexar Europe for $166 million, allowing the company to focus on enterprise solutions and strategic investments.
The divestiture of the majority stake in SMART Brazil will enable SGH to focus on its core strategy of delivering high-performance solutions to enterprise customers. The cash influx from the deal will strengthen the company's financial position, allowing it to increase strategic investments in research, development, and U.S.-based production of advanced technologies. This is expected to have a positive short-term impact on SGH's stock price.
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