Violin Memory, Inc., a leading provider of all-flash storage arrays and appliances delivering application solutions for the enterprise, today announced that it has entered into a definitive agreement to sell its PCIe product line to SK hynix Inc. for approximately $23 million in cash and the assumption of certain liabilities totaling $0.5 million. This sale is consistent with the Company's previously announced plan to review strategic alternatives for its PCIe flash memory card business in order to focus on markets where Violin has proven technology leadership and significant growth opportunities.

The sale of the PCIe product line will include its Velocity PCIe card family, consisting of PCIe-related intellectual property, and certain fixed assets. Under the agreement, SK hynix will extend offers of employment to members of the PCIe development team. The purchase price is subject to a downward adjustment to the extent certain conditions are not satisfied. Closing of the transaction, which is subject to customary closing conditions, is expected to occur by the end of June.

Additional information about the sale of our PCIe product line will be provided during the Company's first quarter fiscal 2015 financial results conference call on May 29, 2014.