Industrial automation system supplier DFI Inc (友通資訊) said that its board of directors approved a plan to acquire a local network security product maker for NT$555 million (US$18.03 million) in an effort to expand into the fast-growing, cloud-based cybersecurity business and to boost its automotive presence.
DFI, which is 45 percent owned by electronics maker Qisda Corp (佳世達), said that it plans to acquire a 51.26 percent stake in Aewin Technologies Co Ltd (其陽科技).
The company plans to subscribe 30 million Aewin shares at NT$18.5 per share via a private placement, a company filing with the Taiwan Stock Exchange showed on Wednesday.
The offering implied a discount of 27 percent compared with Aewin’s closing price of NT$25.4 on Wednesday.
“Aewin is complementary to DFI in terms of product portfolio and sales channels,” DFI chairman Peter Chen (陳其宏) said in a statement.
“The combination will fuel growth by securing more high-value-added products,” he said.
Aewin supplies network security products to first-tier clients in the US and Europe. Those products include next-generation firewalls, application delivery controllers and unified threat management solutions.
Enterprises usually deploy software-defined networking in a wide area network (SD-WAN) through next-generation firewall devices to overcome network security risks.
The SD-WAN market is expected to grow at an annual rate of 59 percent to US$1.3 billion in 2021 as more enterprises introduce the technology to boost the availability of networks and to improve network cost management, energy consumption and Internet security, Gartner Inc said.
DFI’s revenue last year surged 36.55 percent year-over-year from NT$2.9 billion to NT$3.96 billion in the first three quarters, according to company financial statements filed with the exchange.
Net profits soared 47 percent to NT$479.8 million in the first three quarters of last year, compared with NT$326.56 million in the same period of 2017, or earnings per share of NT$1.37.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence