Penguin Solutions to Sell Cree LED to Transom Capital
The all-cash sale is meant to sharpen Penguin’s focus on data center AI infrastructure and memory and would advance its ongoing transformation toward a pure-play, data center-focused company.
Penguin Solutions, Inc. (PENG) agreed to sell Cree LED to Transom Capital Group in an all-cash transaction expected to close in the first calendar quarter of 2027, subject to customary closing conditions.
The company said the planned divestiture reflects its commitment to creating long-term shareholder value and will further align its portfolio, resources, and capital allocation priorities with the growth opportunities it sees in data center AI infrastructure and memory. No purchase price, exchange ratio, or premium was disclosed in the announcement.
President and Chief Executive Officer Kash Shaikh framed the sale as another step in a broader repositioning. “Today’s announcement marks another milestone in Penguin Solutions’ transformation into a pure-play, data center-focused company at the intersection of AI infrastructure and memory. Since launching our AI Factory Platform earlier this year, we have accelerated our financial performance, delivering 58% year-over-year net sales growth in the second half of fiscal 2026, with earnings growing substantially faster than revenue, and provided a strong fiscal 2027 growth outlook,” he said.
That growth claim sits against a company that has already been trimming non-core assets. In April, Penguin closed the sale of its remaining 19% interest in Zilia Technologies, a Brazilian assembler of commodity memory modules, for $46.08 million, leaving it with no stake in that business. The Cree LED sale would remove another legacy line from the portfolio.
Shaikh took the top job in February, succeeding Mark Adams, as the company described itself as a provider of high-performance computing and AI infrastructure solutions. The Cree LED exit is the latest portfolio move under that leadership and the AI Factory Platform launch he cited.
The transaction is expected to close in the first calendar quarter of 2027, subject to the satisfaction of customary closing conditions.