Penguin Solutions Sells Remaining Stake in Brazilian Memory Module Business for \$46 Million

Key Highlights of the Transaction

• Penguin Solutions, Inc. (NASDAQ: PENG) has completed the divestiture of its remaining 19% stake in Zilia Technologies, a Brazil-based memory module business.
• The sale was finalized on March 30, 2026, for a total purchase price of \$46.08 million.
• With this transaction, Penguin Solutions no longer holds any equity interest in Zilia Technologies.
• The buyer, Lexar Europe B.V., previously acquired an 81% stake in Zilia Technologies from Penguin Solutions in November 2023.

Details of the Transaction

Penguin Solutions, Inc., through its wholly owned indirect subsidiary SMART Modular Technologies (LX) S.à r.l., has closed its previously announced divestiture of its remaining interest in Zilia Technologies Indústria e Comércio de Componentes Eletrônicos Ltda. The sale was executed under a Stock Transfer Agreement originally signed on December 29, 2025, involving multiple parties including Lexar Europe B.V. (the buyer), Shenzhen Longsys Electronics Co., Ltd., and Shanghai Intelligent Memory Semiconductor Co., Ltd.

The transaction involved the sale of the last 19% equity interest in Zilia Technologies for \$46.08 million. The buyer, Lexar Europe B.V., now controls 100% of Zilia Technologies, having previously acquired 81% of the company in November 2023. This completes Penguin Solutions’ exit from its Brazilian memory module business.

Background on Zilia Technologies

Zilia Technologies specializes in assembling and testing standards-based, commodity memory modules used by electronics manufacturers in Brazil. These manufacturers supply devices to the Brazilian consumer market, which is a significant sector for memory module demand.

Strategic Rationale and Implications for Shareholders

• This divestiture marks the end of Penguin Solutions’ direct involvement in the Brazilian memory module market, enabling the company to reallocate resources and focus on its core businesses, particularly AI platforms, high-performance memory, and LED solutions.
• The \$46.08 million in proceeds from the transaction may enhance Penguin Solutions’ liquidity and provide additional capital for investment in higher-growth areas.
• Investors should note that this transaction is potentially price sensitive, as it represents a strategic shift and a significant non-recurring cash inflow that could impact both the company’s balance sheet and its future direction.
• This move may signal management’s confidence in focusing on markets with greater long-term potential, particularly in AI and advanced memory and LED technologies, which could positively affect long-term shareholder value.

About Penguin Solutions

Penguin Solutions is an AI factory platform company that provides innovative technologies, skills, and partnerships to help clients deploy and optimize AI solutions. The company also supplies high-performance memory and LED solutions for a variety of specialized applications.

For further information, investors can contact Suzanne Schmidt, Investor Relations at (510) 360-8596 or [email protected]. For media inquiries, contact Maureen O’Leary, Corporate Communications, at (602) 330-6846 or [email protected].

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult with a professional advisor before making any investment decisions. The information provided is based on public disclosures as of the date of publication and may be subject to change.

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