Inventec becomes strategic shareholder of Arima Communications
Inventec announced that it has invested NT$410 million (US$12.7 million) to acquire a 10% stake in Arima Communications through a private placement and will occupy one seat in the boardroom, according to Inventec.
The investment is a strategic move by Inventec to form an alliance with Arima, which has a complementary product portfolio, to access more business opportunities, Inventec spokesman Alex Hsu said.
Arima, which sold its notebook operation to Flextronics, was the third largest Taiwan-based handset maker in the second quarter of 2010. Inventec's main businesses are notebooks and servers but also manufactures limited volumes of smartphones for Motorola and smaller handset vendors.
With the growing popularity of tablets, which some might consider an in-between device of the notebook and smartphone and its development requires know-how from both product segments, sources from Taiwan's handset sector pointed out that Arima and Inventec could take advantage of each others expertise.
The interesting part is that the Inventec family already consists of handset maker Inventec Appliances, which recently made inroads to the development of smartbooks and e-book readers. Consolidation within the business group to avoid intensified competition between the two affiliates will be a challenge, the sources said.
The investment is a strategic move by Inventec to form an alliance with Arima, which has a complementary product portfolio, to access more business opportunities, Inventec spokesman Alex Hsu said.
Arima, which sold its notebook operation to Flextronics, was the third largest Taiwan-based handset maker in the second quarter of 2010. Inventec's main businesses are notebooks and servers but also manufactures limited volumes of smartphones for Motorola and smaller handset vendors.
With the growing popularity of tablets, which some might consider an in-between device of the notebook and smartphone and its development requires know-how from both product segments, sources from Taiwan's handset sector pointed out that Arima and Inventec could take advantage of each others expertise.
The interesting part is that the Inventec family already consists of handset maker Inventec Appliances, which recently made inroads to the development of smartbooks and e-book readers. Consolidation within the business group to avoid intensified competition between the two affiliates will be a challenge, the sources said.
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