BenQ and Lite-On IT have announced that they've formed a strategic alliance. As part of the deal, Lite-On will acquire BenQ's storage-related assets, which includes their customer portfolio and the right to use their technologies and patents. At the same time, BenQ will receive approximately NT$1.2 billion in cash and acquire a 13% stake in Lite-On.
Lite-On IT and BenQ today announced that they have formed a strategic alliance that will bring together two of the industry's leading players and enhance the overall competitiveness of Taiwan's storage sector. The transaction is expected to increase Lite-On IT's global market share to 27%, making it the world's No. 2 optical disk drive (ODD) maker.
As part of the alliance, Lite-On IT will acquire BenQ's storage-related assets, including BenQ's ODM customer portfolio and the rights to use BenQ's technology portfolio. Lite-On IT will also receive order commitments on BenQ-branded storage products.
"This strategic alliance combined with our manufacturing advantages, will allow Lite-On IT to further sharpen its competitiveness in the ODM market and become the No. 2 ODD manufacturer worldwide," expressed Raymond Soong, Chairman of Lite-On IT. "In partnering with BenQ, Lite-On IT expects to benefit from increased manufacturing efficiency, greater economies of scale, and a larger market share."
I must admit that I am a little surprised by this bit of news. Nevertheless, its going to be interesting to see what happens. If you'd like to read more, the entire press release can be found here.