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.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
TARIFF CONCERNS: The chipmaker cited global uncertainty from US tariffs and a weakening economic outlook, but said its Singapore expansion remains on track Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now
RSS