- Gigabyte announced that its enterprise solutions division has officially been spun off from the company.
- Giga Computing Technology will leverage the Gigabyte brand and acts as an independent, wholly-owned Gigabyte subsidiary.
- Gigabyte will receive 83,360,000 common shares of Giga Computing at NTD $10 per share.
Servers and workstations company, Gigabyte Technology has spun off its server business unit. Giga Computing Technology will act as an independent, wholly-owned Gigabyte subsidiary. The new company will benefit from the Gigabyte brand to drive server business growth and innovation. The board decided that the parent company and the new subsidiary agreed that the transaction would create long-term value for customers who are relying on enterprise solutions, as well as the consumer market.
An independent subsidiary
Gigabyte will receive 83,360,000 common shares of Giga Computing at NTD $10 per share. ıt is determined by the estimated value of the subsidiary at NTD $833,600,000. The decision will not have an impact on the daily and financial operations of the parent company. Both companies agreed to maintain the same development and support for all enterprise products and solutions for customers.
Giga Computing will offer systems and products using the Gigabyte brand for the time being. Gigabyte will continue delivering motherboards, GPUs, laptops, desktops, monitors, PC peripherals, and PC components. As two separate entities, the transaction allows both companies to:
- Allocate capital and resources with greater efficiency and agility, focusing on core competencies, emerging markets, and high-growth opportunities;
- Distinct identities for consumer and enterprise products under the Gigabyte brand;
- Improve leadership positions in the enterprise market and strengthen corporate culture;
- Stress greater importance on portfolios, productivity, and business operations to accelerate revenue growth; and
- Explore new manufacturing opportunities across the globe to produce goods in new and emerging markets
Daniel Hou, CEO of Giga Computing said,
« Gigabyte has been going through a transformation to elevate performance and return great value to our shareholders. This is just another extension of our long-term plan that will allow our enterprise solutions better react to market forces and to better tailor products to various markets. Although we go by a different name, we will continue operations as we always have, and our customers will continue all the same relationships and have high expectations from our well-established server business unit that offers a diverse product portfolio. We believe our announcement proves our commitment to creating long-term value for our customers, employees, and shareholders. »