secwatch.observer — SEC 8-K summary
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Issuer:     Penguin Solutions, Inc. (PENG)
CIK:        0001616533
Form:       8-K
Filed at:   2023-06-13T23:59:59+00:00
Accession:  0001193125-23-165699
Event type: m_and_a
Sentiment:  positive
Materiality: 0.85
Item codes: 1.01, 7.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1616533/000119312523165699/0001193125-23-165699-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1616533/000119312523165699/d501135d8k.htm
  HTML page:      https://secwatch.observer/filing/0001193125-23-165699

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