GIGABYTE Has Spun-off Its Server Business Unit, Pursuing Greater Long Term Sustainable Growth and Value Creation with Giga Computing
GIGABYTE Technology, an industry leader in high-performance servers and workstations, announced its enterprise solutions division has officially been spun off from GIGABYTE and acts as an independent, wholly-owned GIGABYTE subsidiary. The new standalone company, Giga Computing Technology, will leverage the GIGABYTE brand to drive server business growth and innovation. The GIGABYTE board of directors reached the decision, both the parent company and its new subsidiary agreed that the transaction would create long-term value for GIGABYTE customers that rely on enterprise solutions, as well as the consumer market.
In return for the split, GIGABYTE will receive 83,360,000 common shares of Giga Computing at NTD $10 per share, and this was determined by the estimated value of the subsidiary at NTD $833,600,000. This subsidiary creation is simply a group reorganization and will not have an impact on the daily and financial operations of the parent company. GIGABYTE and Giga Computing have an agreement in place to maintain the same development and support for all GIGABYTE enterprise products and solutions for customers. These systems and products sold by Giga Computing will, for the time being, continue to use the familiar GIGABYTE brand that is known and respected in the tech sector. At the same time, GIGABYTE will continue to drive its own growth in its consumer divisions for motherboards, GPUs, laptops, desktops, monitors, PC peripherals, and PC components.
“GIGABYTE has been going through a transformation to elevate performance and return great value to our shareholders. This is just another extension of our long-term plan that will allow our enterprise solutions better react to market forces and to better tailor products to various markets,” said Daniel Hou, CEO of Giga Computing. “Although we go by a different name, we will continue operations as we always have, and our customers will continue all the same relationships and have high expectations from our well-established server business unit that offers a diverse product portfolio. We believe our announcement proves our commitment to creating long-term value for our customers, employees, and shareholders.”