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Mitac buys U.S. assets to enhance cloud computing capability

Mitac buys U.S. assets to enhance cloud computing capability

Taipei, July 17 (CNA) Taiwan's Mitac International Corp., a computer and server manufacturer, said Saturday that it is buying contract assembly assets and inventories from the U.S.-based Synnex Corp. in an aim to enhance its cloud computing supply chain.
The deal is expected to be worth between US$55 million and US$80 million, Mitac said.
Bill Ho, president of Mitac, said that cloud computing will become the major driving force of the company's growth.
Its revenue for server solutions for cloud computing accounted for between 5 percent and 10 percent of total revenue in the first half of the year, Ho said.
If the revenue of ODM (original design manufacturing) was included, cloud computing related businesses would account for nearly 30 percent of revenue in the first six-month period, he added.
Synnex said the sale includes inventory and customer contracts primarily related to customers jointly served by Synnex and Mitac.
Synnex derived revenue of about US$375 million from those customers in the year ending May 31.
Synnex said it will focus on its core data center and distribution assembly operations.
(By Chang Liang-chih and Fanny Liu)




Updated : 2021-04-20 16:31 GMT+08:00