ADVANTECH and ASUSTek have announced a strategic alliance based on a direct share swap. The focus of the collaboration is on new product developments, manufacturing and quality, as well as establishing a joint venture tentatively titled AdvanSus, aimed at pursuing new business opportunities in industrial computing.
Combining Advantech's strengths in the industrial computing field with ASUSTek's commercial computing market leading experience is seen as a winning formula.
Advantech CEO K.C. Liu said the vision for Advantech to ally with ASUSTek was to leverage ASUSTek's expertise in quality, R&D and cost-control, which would take the low-volume, high-customisation and service-driven industrial computing industry to the next level.
“The long term goal is that ASUSTek and Advantech will enhance each other's leading positions in the commercial computing and industrial computing areas."
ASUSTek CEO Jonney Shih said under the leadership of Mr Liu, Advantech had created high brand value and outstanding business results in industrial computing.
“Through the strategic alliance with Advantech, a best-in-class company, ASUSTek expects to further create synergy in industrial computing, and head towards a world-class leading hi-tech company."
Under the terms of the strategic alliance agreement, ASUSTek will hold 15% of Advantech's shares as well as one seat on the board of directors and one supervisor. Advantech will receive approximately 1.4% of ASUSTek shares.
The agreement ratio is derived from both companies' recent stock market prices, with reference to other key performance indicators.