ECS merges with Tatung; aims to hit revenue of NT$100 billion

Taiwan's motherboard maker Elitegroup Computer Systems (ECS) and home appliance maker Tatung has announced their strategic alliance, which will take effect on Jan. 1, 2006 recently respectively.

Tatung will become the biggest shareholder of ECS with 30% stocks while ESC will take over Tatung's desktop PC segment. According to Tatung, its desktop PC segment has NT$2.0 billion in cash, NT$4.5 billion in inventory, and NT$75 million in fixed assets. The new ECS will consist three departments, including motherboards department, which will take sales of 20%, notebooks department, which will account 30% sales, and desktop PCs department that will account 50% sales next year.

About motherboards, next year ECS's own-brand will account up to 50% of total from 40% this year. About desktop PCs, ECS will take over desktop PC orders from Hewlett Packard (HP) via the merger. According to ECS, the new company is expected to hit combined revenue over NT$50 billion and aims to NT$100 billion next year.