News
 

Bookmark and Share

(0) 

Arima Computer Corp. has announced  the signing of a binding Letter of Intent to sell the notebook computer and server related business, operation and assets owned by Arima to Flextronics. The move means that Arima, one of the world’s largest contract manufacturers of notebooks, exits computer business and will concentrate on other projects.

The transaction includes operation, facilities (including one plant, four dormitories together with the related land usage right, located at Wu-Jiang ), machineries, products, technology, customer lists, inventories, as well as the entire stockholding or shareholding of Arima’s wholly-owned subsidiaries. The transaction price is $59.5 million (NT$1,963 million) over the book value of the disposed assets at closing. As of June 30, 2007, the book value of the relevant assets were about $132 million (NT$4,356 million).

The move will allow Arima to concentrate on other businesses, whereas Flextronics, who is also in process of taking over contract maker Solectron, will strenghten its operations, client portfolio and engineering pool.

The decision to sell off the computer business of Arima to Flextronics, one of the world’s largest contract makers of electronics and computer equipment, outlines very thin margins on the market of notebooks and servers. The transaction also fits into the trend towards acquisitions of smaller players by larger companies and once again emphasizes that smaller players will inevitably disappear.  

The definitive sale and purchase agreement is expected to be executed within 45 days. Afterwards, Arima will immediately call a shareholders meeting to seek approval of the transaction. Flextronics will apply for the Investment Commission’s approval according to applicable laws. The parties will proceed to close the deal on a date to be further agreed by both parties after Flextronics receives the approval from the Investment Commission.

Arima indicates that the transaction will safeguard all affected Arima employees’ interests. Flextronics intends to offer positions to substantially all of Arima’s employees of the notebook and server business. Flextronics will also offer employee benefit and base compensation that are substantially similar in the aggregate to those provided by Arima. Moreover, the existing relationships between Arima and suppliers, customers and banks will remain unchanged. Prior to the closing of this transaction, Arima will continue to operate its business in the ordinary course.

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Tuesday, July 22, 2014

10:40 pm | ARM Preps Second-Generation “Artemis” and “Maya” 64-Bit ARMv8-A Offerings. ARM Readies 64-Bit Cores for Non-Traditional Applications

7:38 pm | AMD Vows to Introduce 20nm Products Next Year. AMD’s 20nm APUs, GPUs and Embedded Chips to Arrive in 2015

4:08 am | Microsoft to Unify All Windows Operating Systems for Client PCs. One Windows OS will Power PCs, Tablets and Smartphones

Monday, July 21, 2014

10:32 pm | PQI Debuts Flash Drive with Lightning and USB Connectors. PQI Offers Easy Way to Boost iPhone or iPad Storage

10:08 pm | Japan Display Begins to Mass Produce IPS-NEO Displays. JDI Begins to Mass Produce Rival for AMOLED Panels

12:56 pm | Microsoft to Fire 18,000 Employees to Boost Efficiency. Microsoft to Perform Massive Job Cut Ever Following Acquisition of Nokia