|Accton and PHILIPS Sign LOI to Create New Entity to Go After Wireless Market|
Hsinchu, Taiwan - Accton Technology Corporation (Accton) of Taiwan and Royal Philips Electronics (Philips), today announced the signing of a letter of intent to jointly establish a new company to go after the growing wireless market.
The new company is a direct response to the highly successful acceptance of Wi-Fi in the market as well as to the growing number of companies offering commodity wireless products in the market. The new company will merge the wireless connectivity module activities of Philips and Accton into a single new entity that will develop advanced cost effective consumer wireless solutions incorporating Acctons know-how in low cost wireless networking design and manufacturing with Philips' multimedia and wireless technology and know-how. The new company will be a complete solution provider with the capability to deliver a complete range of wireless products with multimedia-ready home networking capabilities.
The new company will bring together the best people, technology and know-how from Philips and Accton to accelerate the introduction of next generation advanced wireless solutions as well as accelerate the adoption of wireless technology beyond today's limited application.
Yimin Doo, President of Accton Technology Corporation said: "This is a great opportunity to partner with a company that is one of the biggest electronic companies in the world and highly respected in Taiwan and abroad. The merger of Philips advanced RD and know-how and Accton ODM capabilities will greatly accelerate the introduction of next generation wireless products with advanced features. We are extremely pleased to have the opportunity to work with Philips."
A definitive agreement will be signed following due diligence, receipt of necessary regulatory and shareholder approval and workers council consultation.