Lite-On to take over BenQ's optical drive division

— 10:26 AM on April 10, 2006

DigiTimes reports that Lite-On and BenQ have announced a strategic alliance, under the terms of which Lite-On is to take over BenQ's optical disc drive (ODD) division.

Lite-On IT will take over BenQ’s ODD business unit, including assets, related technology and licensed use of patents, ODM client portfolio, and order commitment on BenQ’s own-brand ODD products, at a purchasing price of NT$1.2 billion [$37.15 million USD] in cash plus a 13% stake. BenQ will thereby become the second largest shareholder of Lite-On IT.
The takeover is expected to be completed "on or about" June 1. In the third quarter of last year, Lite-On and BenQ shipped 2.28 and 2.40 million desktop optical drive units worldwide, respectively, making them third and fourth behind NEC and Hitachi/LG, which shipped 2.84 and 7.18 million units. Combined, Lite-On and BenQ's sales would have added up to 4.68 million, placing them comfortably above NEC as the world's second-biggest manufacturer of optical drives. We'll have to see if these conditions still apply in the third quarter of this year, once the takeover is complete.
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