OCZ announced today they will acquire Indilinx, a South Korea-based manufacturer that specializes in flash memory controller hardware and software for solid state drives. Most notably, Indilinx produced the "Barefoot" controller used on the first generation OCZ Vertex solid state drive, as well as in other OCZ products and from other manufacturers like the Crucial M225, G.Skill Falcon and the SuperTalent UltraDrive ME SSD.

Earlier this year OCZ revealed they were exiting the memory market due to weaking global demand, instead focusing on the consumer and enterprise SSD business. The company is also keeping alive their power supply business, which is derived from the acquisition of PC Power and Cooling made in 2007.

Although OCZ's latest Vertex 3 drives are based on competing SandForce controllers, the company says they will continue to rely on third-party partners for some of their products. Last year Indilinx was expected to release a new SATA 6Gbps controller called "Jet Stream", but delays have kept pushing the chip out of the market.

Meanwhile, OCZ points out they are very interested in gaining substantial IP from Indilinx including an advanced high performance eMMC 4.4 x controller. eMMC is an embedded storage solution with an MMC interface, flash memory and controller, all in a small BGA package. This type of technology is meant to simplify mass storage designs for portable consumer electronics products such as smartphones, tablet PCs, GPS units, and netbooks.

Pending regulatory approval, OCZ will acquire Indilinx for approximately $32 million of OCZ common stock. "This transaction is an important step in OCZ's strategy and significantly enhances our ability to capitalize on the worldwide demand for Solid State Drives," said Ryan Petersen, CEO of OCZ Technology Group. "This combination brings together two organizations that are committed to advancing solid state drive design, and provides a unique opportunity for OCZ to increase both customer and shareholder value as well as expand our reach into embedded markets."