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AAEON Technology and IBASE Technology Agree Share Exchange
AAEON Posted 06/15/2018
(Taipei, Taiwan) – AAEON Technology Inc. (stock code: 6579) has agreed to a stock exchange with IBASE Technology Inc. (stock code: 8050). AAEON’s board of directors met on June 11 to agree the measure, which is expected to be completed on September 29.
The terms of the transaction value each IBASE share at 0.788 AAEON shares. Upon completion of the exchange, it is expected that AAEON will hold an approximate 30% stake in IBASE, while IBASE will own approximately 28.08% of AAEON.
AAEON and IBASE operate in the industrial computer industry and have built reputations for innovative design and reliable solutions. Through their share exchange negotiations, they have established a close cooperative relationship, which includes the sharing of marketing and purchasing resources. By sharing corporate resources, the two firms can take advantage of increased economies of scale, build on their respective strengths, and improve their operating efficiency and competitiveness.
“The influence of IoT technologies has left the industrial computer market fragmented,” AAEON CEO Howard Lin said at a June 11 press conference to announce the share exchange. “AAEON has the strength to thrive in the current market, but we must prepare to face increased pressure in the future.”
Creating a partnership through a share exchange rather than a merger or acquisition gives AAEON and IBASE the same benefits in terms of economies of scale, but it also leaves them with the freedom to focus on their target vertical markets and respective areas of expertise.
“In addition component purchasing, we will also consider cooperating on research and development,” Lin said. “Instead of both companies separately researching the same emerging technologies, we can pool our resources and breakthroughs to cut costs and speed up the rate of development.”
Established in 1992, AAEON is one of the leading designers and manufacturers of professional intelligent IoT solutions. Committed to innovative engineering, AAEON provides reliable and high quality computing platforms, including industrial motherboards and systems, industrial displays, rugged tablets, embedded controllers, network appliances and related accessories, as well as integrated solutions. AAEON also has the hardware and services for premier OEM/ODMs and system integrators worldwide. As an Associate Member of the Intel® Internet of Things Solutions Alliance, AAEON offers customized end-to-end services from initial product conceptualization and board product development to mass manufacturing and after-sales service programs. For an introduction to AAEON’s expansive line of products and services, visit www.aaeon.com.