ASUSTeK Computer, on of the world's largest makers of information technology equipment, will acquire Askey Computer Corp., a Taiwan-based manufacturer of various telecom equipment. The merge between two companies is scheduled on March, 2006, and when combined, the new company will become the world's largest maker of communication products.
According to The Taiwan Economic News, ASUS and Askey recently declared at a joint interim meeting for stockholders that the two companies have decided to merge next year. After the merger, Askey will become a subsidiary of ASUS, with Askey swapping seven shares of its stock for one share of ASUS? The exchange date has been set for March 1, 2006.
Askey manufactures modems, routers, hubs, and video converters and is also the world's largest maker of ADSL modems. Meanwhile, ASUS produces variety of telecom and Internet equipment and is ranked among the top three makers of cable modems. The combination of the two companies will lead to creating of the world's largest supplier of Internet and communication products with more than 40% global market share, according to the publication.
According to reports citing insiders, ASUS?revenue from Internet and communication products is around $352.94 million per year, while Askey's annual revenue is $882.35 million.
Earlier it was reported that ASUSTeK Computer planned to split into two independent companies, one of which would deal with sales of ASUS-branded products and another would concentrate on manufacturing.
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