Advantech is, according to China Economic News (CENS), set to buy a controlling stake in BCM Embedded, a motherboard distributor.
To accelerate the development of dual-branding strategy, Advantech Co., one of Taiwan`s major manufacturers of industrial computers, will merge with BCM Embedded Computer Inc. through its fully-owned Advantech Fund A by the end of June.
Advantech Fund A has a 50% stake in BCM which focuses on distribution of industrial motherboards. In mid-June, Advantech director board passed a proposal to increase investment of NT$200 million (US$6.6 million at US$1:NT$30.3) in Advantech Fund A to take controlling stake in BCM, which will become Advantech`s distribution unit after the merger. Advantech will continue to engage in M&As at home and abroad, with the effect of the M&A to show sometime in 2009.
It seems M&A are all the rage this year in the IPC industry. Earlier in the year Adlink bought out Ampro. The number of companies in the sector are getting smaller for sure and IPC companies are, out of neccessity, becoming more and more vertically integrated.
Article: Advantech to Merge With BCM Embedded Computer by June End
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