High Tech Computer Corp (HTC,
HTC has signed an acquisition agreement with Dopod to purchase the assets of the latter's nine subsidiaries in Taiwan, Hong Kong, Singapore, Malaysia, Indonesia, Australia, Thailand, India and the Philippines, the company said in a statement.
Dopod's work force, which number more than 100, will be absorbed by HTC.
PHOTO: AFP
The transfer of all assets, which HTC estimated would not exceed US$14.5 million based on Dopod's net worth, will become effective on July 1, the HTC statement read.
HTC announced nearly a year ago its intention to acquire Dopod, which was set up in 2004. HTC said last June that it would spend US$150 million to buy a more than 50-percent stake in Dopod, either through a share swap or cash transaction.
"This is the optimal solution for both parties. We will continue to push the brand business as HTC has strong advantages in terms of products, market position and production," Peter Chou (
The deal is a plus to HTC, as Dopod's brand marketing and promotional know-how can help it strengthen its presence in the fast-growing Asia-Pacific region, he said.
HTC is set to unveil new smartphones in certain parts of Asia carrying the HTC logo in the future, while lending full support to existing Dopod phones until the brand is finally phased out, Chou said.
The move is similar to HTC's earlier move into Europe, where it began by acquiring a local brand, Qtek, and gradually shifted to promoting the HTC brand.
However, the new deal with Dopod does not include its China operations.
"We have no plans to bring HTC phones into China now as Dopod phones are well known and have a high brand value in the country," Chou said.
Sales of Dopod phones last year reached nearly 300,000 in the nine Asian countries, while sales in China alone hit about 200,000 units, Dopod chief executive officer Jack Tong (
Last month, HTC posted a revenue growth of 19.7 percent year-on-year to NT$9.09 billion (US$273.8 million).
The company said yesterday that second-quarter sales would increase 5 percent from the same period last year, while gross margins would be flat.
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