MiTAC Holdings Creates MiTAC Computing Technology Corporation (MCT) to Accelerate Strategic Investment Pace in Cloud Computing
MiTAC International Corporation (MIC) will spin the business off to MCT, transaction closing date is determined as September 1, 2014
(Taipei, Taiwan, July 31, 2014,) MiTAC Holdings Corporation (MHC,TWSE: 3706) held a press conference of material information at the Taiwan Stock Exchange today (the 31st) on behalf of its subsidiary MiTAC International Corporation (MIC) explaining the spinoff offer and acceptance resolved by the boards of MIC and MiTAC Computing Technology Corporation (MCT), two subsidiaries of MHC. MIC expects to spin off the Cloud Computing Business Group to the newly-incorporated MCT. The transaction closing date of the spinoff is determined as September 1, 2014. The nature of this spinoff is organization re-structuring within the MiTAC Group. This transaction will not affect the financial statements and net assets of MHC.
The MiTAC Group is riding the mainstream trend of cloud computing and SoLoMo(Social, Local, Mobile) online smart life and aggressively implementing independent business operation based on specialization to accomplish group transformation and improving overall competitiveness. On September 12, 2013, MHC was established through share swap of 100% shares in MIC. In the meantime, MiTAC Group was also implementing restructuring to meet the future operational direction of the group. The boards of MIC and MCT both approved that the business of cloud computing business group of MIC, valued at about NT$3.4 billion (including assets, liabilities, related valuation items in shareholders’ equity, and operations), will be spun off and offered to the MCT that is newly incorporated. MCT will issue new shares as consideration to MHC. The transaction closing date of the spinoff is determined as September 1, 2014.
According to the estimates of market research institutions, by 2016, cloud computing could be an industry worth hundreds of billions around the world. The cloud computing business group of MIC, which will be MCT in the future, is the business segment whose core is cloud database and computing equipment. Aside from more than twenty years of ODM industry experience in corporate products such as servers and storage, it has over twenty years of customization capability with the TYAN brand in this industry and strong business relationships with channel operators and system integration providers. MCT is the only company with the capability to design and manufacture servers across Intel X86 architecture, SPARC architecture, IBM Power architecture and ARM based architecture. In the future, aside from maintaining MiTAC’s edge in cloud computing, MCT will provide the next generation of solutions in public cloud, private cloud, and hybrid cloud equipment to the mass market and customers in a more refined manner so as to increase the group’s industry market share and improve business performance and profit.