MiTAC International Corp (神達電腦), which manufactures and markets computers and computer peripherals, said yesterday it signed an agreement with Synnex Corp to purchase certain contract assembly assets from the Fortune 500 company based in the US.
The deal, worth between US$55 million and US$80 million, is aimed to help develop MiTAC’s cloud computing business and corporate computer products, the company said in a stock exchange filing yesterday.
“The deal is mainly to strengthen MiTAC’s cloud computing business and product supply chain capability to satisfy customer demand, as well as increase the company’s business scale and operation efficiency,” MiTAC president Bill Ho (何繼武) said in the filing.
In the first six months of the year, MiTAC reported a revenue of NT$26.2 billion (US$815.1 million), that was up a mere 0.42 percent from NT$26.09 billion a year earlier, according to company data released on July 9.
MiTAC, which sells portable navigation devices under the Mio, Navman and Magellan brands, as well as computer servers under the Tyan nameplate, expects cloud computing to become a major driving force of the company’s growth.
In the first half of the year, revenue from server solutions for cloud computing accounted for between 5 percent and 10 percent of total revenue, or between NT$1.31 billion and NT$2.62 billion, the CNA reported yesterday, citing Ho.
If the revenue of original design manufacturing was included, total cloud computing related businesses made up nearly 30 percent, or NT$7.8 billion, of first-half revenue, Ho said.
The transaction also includes the sale of Synnex’s inventory and customer contracts, primarily related to customers currently being jointly served by the two companies.
The total revenue related to these customers was less than US$375 million for the 12 months prior to May 31 this year, Synnex said in a separate statement on Friday.
Synnex is a leading business process services company based in Fremont, California. It is a major contract manufacturer of information technology products for MiTAC and provides the Taiwanese firm with distribution services and supply chain management in the US.
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