Asustek acquires WLAN maker via share swap

**MIG-31** · Oct 5, 2005, 04:50 PM

Motherboard giant Asustek Computer announced today that it will acquire Askey Computer, a Taiwan-based broadband equipment maker, via a share swap, according to filings with the Taiwan Stock Exchange (TSE). The deal is estimated to be worth NT$6.6 billion (US$199 million).

Under the merger plan, every seven shares of Askey will be swapped for one Asustek share, with the merger taking effect on March 1, 2006. After the acquisition, Asustek’s capital will reach NT$29.9 billion (US$900 million), up from NT$28.6 billion (US$860 million) before acquiring Askey.

In 2004, Askey shipped more than 12 million ADSL modems, whereas Asustek reached shipments of more than three million cable modems, according to Asustek. Asustek aims to ship six million cable modems this year, with a 30% market share, said the company. Ausustek expects to lead the global ADSL and cable modem market after integrating Askey.

In March 2004, Foxconn Electronics (the registered trade name of Hon Hai Precision Industry) acquired Ambit Microsystems, which was Taiwan’s largest broadband equipment supplier in 2003.

According to Taiwan's Industrial Economics and Knowledge Center (IEK) of the government-sponsored Industrial Technology Research Institute (ITRI), production value of the Taiwan network equipment industry in 2005 will reach NT$480 billion (US$14.4 billion), up from NT$430 billion (US$12.9 billion) last year.
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Source: Digitimes

Oct 5, 2005, 04:50 PM	#1
MIG-31 HardwareHeaven News Mod Join Date: Dec 2002 Location: Nottingham,UK Posts: 56,860 Rep Power: 471 System Specs	Asustek acquires WLAN maker via share swap Motherboard giant Asustek Computer announced today that it will acquire Askey Computer, a Taiwan-based broadband equipment maker, via a share swap, according to filings with the Taiwan Stock Exchange (TSE). The deal is estimated to be worth NT$6.6 billion (US$199 million). Under the merger plan, every seven shares of Askey will be swapped for one Asustek share, with the merger taking effect on March 1, 2006. After the acquisition, Asustek’s capital will reach NT$29.9 billion (US$900 million), up from NT$28.6 billion (US$860 million) before acquiring Askey. In 2004, Askey shipped more than 12 million ADSL modems, whereas Asustek reached shipments of more than three million cable modems, according to Asustek. Asustek aims to ship six million cable modems this year, with a 30% market share, said the company. Ausustek expects to lead the global ADSL and cable modem market after integrating Askey. In March 2004, Foxconn Electronics (the registered trade name of Hon Hai Precision Industry) acquired Ambit Microsystems, which was Taiwan’s largest broadband equipment supplier in 2003. According to Taiwan's Industrial Economics and Knowledge Center (IEK) of the government-sponsored Industrial Technology Research Institute (ITRI), production value of the Taiwan network equipment industry in 2005 will reach NT$480 billion (US$14.4 billion), up from NT$430 billion (US$12.9 billion) last year. _______________ Source: Digitimes __________________ Please Post Your News Submissions Here