---
schema_version: "secwatch.filing_event.v1"
accession: "0001193125-23-165699"
form_type: "8-K"
ticker: "PENG"
cik: "0001616533"
company_name: "Penguin Solutions, Inc."
filed_at: "2023-06-13T23:59:59+00:00"
generated_at: "2026-06-14T02:05:26.918466+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# SGH to sell 81% of SMART Brazil to Lexar Europe for ~$166M cash

## Summary
- Upfront cash of $137.7M (81% of $170M) plus deferred cash of $28.35M (81% of $35M) at closing.
- SGH retains 19% interest; put/call options for remaining stake at 7.5x net income between 2027-2029.
- Transaction values 100% of SMART Brazil at $205M enterprise value; expected to close by end of calendar 2023.
- SMART Brazil sales were ~$114M for first half of fiscal 2023; deal accretive to non-GAAP gross margins.
- SGH to incur one-time non-cash translation adjustment charge and transaction costs.

## SEC filing metadata
- accession: 0001193125-23-165699
- form_type: 8-K
- ticker: PENG
- cik: 0001616533
- company_name: Penguin Solutions, Inc.
- filed_at: 2023-06-13T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 1.01, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1616533/000119312523165699/0001193125-23-165699-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1616533/000119312523165699/d501135d8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001193125-23-165699
- JSON: https://secwatch.observer/filing/0001193125-23-165699.json
- Plain text: https://secwatch.observer/filing/0001193125-23-165699.txt

## Key facts
- Material Agreements
  Penguin Solutions, Inc. entered into Stock Purchase Agreement with SMART Modular Technologies (LX) S.à.r.l., Lexar Europe B.V., Shenzhen Longsys Electronics Co., Ltd., Shanghai Intelligent Memory Semiconductor Co., Ltd. valued at $205.00 million (effective 2023-06-13).
  - Action: entry
  - Agreement: asset purchase
  - Counterparty: SMART Modular Technologies (LX) S.à.r.l., Lexar Europe B.V., Shenzhen Longsys Electronics Co., Ltd., Shanghai Intelligent Memory Semiconductor Co., Ltd.
  - Value: $205.00 million
  - Effective: 2023-06-13
  source text: On June 13, 2023, SMART Global Holdings, Inc., a Cayman Islands exempted company (“ SGH ”), entered into a Stock Purchase Agreement (the “ Purchase Agreement ”), by and among SMART Modular Technologies (LX) S.à.r.l., a société à responsabilité limitée governed by the laws of Grand Duchy of Luxembourg and a wholly owned subsidiary of SGH (“ Seller ”), Lexar Europe B.V., a company organized under the laws of The Netherlands (“ Purchaser ”), Shenzhen Longsys Electronics Co., Ltd., a company limited by shares governed by the laws of the People’s Republic of China (“ Longsys ”), solely with respect to certain provisions therein, Shanghai Intelligent Memory Semiconductor Co., Ltd., a limited liability company governed by the laws of the People’s Republic of China (“ Parent Funding Entity ”), and, solely with respect to certain provisions therein, SGH, for the intended sale of its standards-based modules assembly and test business in Brazil.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1616533/000119312523165699/0001193125-23-165699-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.