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MiTAC International to purchase Tyan Computer affiliate

MiTAC International Corp (神達電腦), the world's largest contract maker of global positioning system devices, announced yesterday that it would acquire affiliate Tyan Computer Corp (泰安電腦) through a share swap to enhance its scale and operating efficiency.

The share exchange ratio would be one MiTAC International share for 1.26 shares of Tyan Computer, Mitac International said in a filing to the Taiwan Stock Exchange yesterday.

MiTAC International owns around 35 percent of Tyan Computer, which specializes in the design and manufacture of system board products for both industrial servers and workstations. The two firms are both under parent company MiTAC Group (神通集團).

After the merger, MiTAC International will takeover all of Tyan Computer's operations, and Tyan Computer will no longer exist as a separate entity, the filing said. The planned acquisition is expected to be completed by September this year, it added.

MiTAC International, which yesterday reported NT$4.39 earnings per share for last year, said synergy benefits of the proposed merger would start to develop in the fourth quarter, the Chinese-language www.cnyes.com Web site reported yesterday, citing MiTAC International president Billy Ho (何繼武) at a press briefing.

The Tyan acquisition is the second deal that MiTAC Group affiliates have announced in the past 10 days as it consolidates its businesses and resources to increase competitiveness.

On March 13, MiTAC Technology Corp (神基科技), a computer manufacturer, announced its plan to takeover MiTAC Precision Technology Corp (漢達精密科技) via a share swap.
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