ECS and Tatung in strategic alliance

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Elitegroup Computer Systems (ECS) and Tatung have reached a deal in which the motherboard maker will issue new shares in exchange for the Taiwan electronics player?s desktop PC department.

The deal will take effect on January 1, 2006, after which ECS?s revenues will be included as part of Tatung?s consolidated revenues. With Tatung?s and ECS?s 2004 consolidated revenues at NT$111.2 billion (US$3.35 billion) and NT$39.8 billion (US$1.2 billion) respectively, Tatung will become a company with consolidated revenues of over NT$150 billion (US$4.5 billion) because of the strategic alliance, according to the announcement.

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