Fri, Oct 03, 2014 - Page 14 News List

Compal’s board approves Avalue Tech investment

By Lisa Wang  /  Staff reporter

Compal Electronics Inc (仁寶) yesterday said its board has approved a plan to invest NT$495 million (US$16.25 million) in Avalue Technology Inc (安勤科技) to expand into the Internet of Things (IoT) market.

The company said it would subscribe to 14 million new shares of Avalue through a private placement, making it the firm’s biggest shareholder with a 20.45 percent stake, according to a company statement.

Avalue makes industrial motherboards and specializes in the medical and gaming industries. It is a member of Intel Corp’s Internet of Things Alliance.

Compal is the world’s second-largest notebook computer contract maker by shipments. The company said earlier this year that it was seeking investment opportunities to diversify into non-PC businesses after making progress in the smartphone manufacturing segment.

“Through this strategic investment, Compal will be able to leverage into the new medical system, automotive electronics and IoT businesses,” spokesman Gary Lu (呂清雄) said by telephone.

“The partnership with Avalue will help us better under the market as IoT is a big market with lots of applications and potential customers. This partnership will also help us land major projects in the future,” he added.

Compal will continue to look for investment opportunities in niche markets such as industrial automation, surveillance, medical systems, automotives and “smart” cities, the statement said.

Compal president Ray Chen (陳瑞聰) in May said that revenue generated from PCs would decrease to about 70 percent of the total at the end of this year, from 80 percent in the first quarter. The company plans to begin shipping servers for its PC customers this quarter.

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