USI Acquires Mainboard Maker Abit.
Abitís Mainboard Business Goes to USI
by Anton Shilov
[ 01/24/2006 | 11:31 PM ]
Universal Scientific Industrial (USI), a design and manufacturing company from Taiwan, said it would acquire assets of troubled mainboard maker Abit Computer Corp. The latter confirmed the move, but preferred to call it ďstrategicĒ agreement. Under the terms of the agreement, USI will continue to manufacture mainboards under Abitís brand-name and no change in the development process expected.
ďWith USIís manufacturing excellence and economies of scale, coupled with Abit engineering and innovation, we are confident that our combined resources will produce our most exciting Abit products ever,Ē said Jason Hsu, executive vice president at Abit.
Under the terms of the agreement, USI will pay a total of about $10.9 million (350 million Taiwanese dollars) in cash and 20 million preferred shares of USIís newly established subsidiary for Abitís motherboard brand ďABITĒ, as well as all patents, products, business and human resources related to its motherboard business, according to USIís release cited by DigiTimes web-site.
As a result of the transaction, end-users will still be able to buy Abit-branded mainboards developed by the engineers renowned for their passion for high-performance computer equipment. Earlier Abit made its mainboards itself and those products were recognized as among the best of the best by enthusiasts. However, after going into tax dispute with the Taiwan authorities, the company had to consider outsourcing and even sell off its building to cut debts.
ďMotherboards are one of USIís main product lines and we are confident that the acquisition provides an opportunity for USI to benefit from Abitís outstanding brand image and well-developed channels in Asian, American and European markets in order to expand USIís share in the motherboard market and become one of the tier one motherboard suppliers in the world,Ē said CY Wei, president of USI.