Toshiba Acquires OCZ for $35 Million

Prunes - December 4, 2013 01:41AM in Storage / Hard Drives

Only a few days ago, OCZ filed for bankruptcy. It was sad news for many, since the company's SSDs have been a favorite for many PC builders. But it may not be the end of OCZ's line of SSDs, as it has been confirmed that Toshiba will acquire "OCZ's client and enterprise solid state drive business". And while doing that Toshiba will also be funding OCZ's purchase of NAND, so it can support its customers during the transitional period.

Toshiba will obtain every single part of OCZ, which includes its "proprietary controllers, firmware, and software, as well as the teams responsible for bringing those solutions to market." This is a huge gain for Toshiba's SSD department, since OCZ has extensive knowledge about SSDs and especially its own controller and firmware. Toshiba will also be acquiring OCZ's brand and sales channels, so maybe Toshiba will continue to sell products under the OCZ brand, but it is still unknown.

According to Ralph Schmidt, CEO of OCZ, the causes of OCZ's demise are credit issues, NAND supply issues, and a very competitive SSD market. The last few years the number of SSD manufacturers has grown tremendously, and it now consist of large players, such as Intel, Samsung, Corsair, and many more. Many of these large companies have very deep pockets, which enables them to pour large amounts of money into R&D and advertising. And it appears that it was too much for OCZ.

Source: Ars Technica