Today OCZ Technology announced that they will be purchasing Indilinx, which is one of the primary manufacturers of SSD controllers and software. Currently OCZ uses Indilinx in a variety of products, including the Z-Drive and Onyx-series SSDs.
Today OCZ Technology announced that they will be purchasing Indilinx, which is one of the primary manufacturers of SSD controllers and software. Currently OCZ uses Indilinx in a variety of products, including the Z-Drive and Onyx-series SSDs.
The move has been strengthens OCZ’s position in the SSD market by giving them a more complete solution, as opposed to the current model of licensing someone else’s processor, like those from SandForce. OCZ gains assorted other intellectual property and strengthens their ability to roll out SSDs more rapidly and cost effectively.
OCZ isn’t the first company to buy a stake in a SSD controller manufacturer though; Kingston purchased a large stake in JMicron earlier this year. The long-promised consolidation in the SSD market appears to be happening as manufacturers look at ways to increase their market share and cost effectiveness.
Don’t expect to see OCZ move away from their high-performance SSD lines based on SandForce processors, like the Vertex 3, though. OCZ will maintain use of several processors, perhaps leveraging their new Indilinx relationship to drive price advantage in the mainstream and entry-level SSD markets.
OCZ will acquire Indilinx for approximately $32 million of OCZ common stock. Indilinx shareholders will own approximately 9.5% of the OCZ shares outstanding after issuance of the shares. OCZ expects the deal to close within the next 30 days.
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