News
April 21, 2011
Innodisk Corp. and Actica Inc. Agree to Merge
Innodisk Corp. expand its leadership in military, industrial, and embedded system industry to server industry by acquiring Actica Inc.
Innodisk Corporation, a Taiwan based company leader in military, industrial, and embedded system storage, memory, and other applications, and Actica Inc., a California, USA based company focus on mission critical high end server memory, announced today they have signed a definitive merger agreement that will combine Innodisk and Actica into a major business identity under Innodisk Corp.
By leveraging Actica’s server industry channel and experience, Innodisk will expand its current products of DRAM, SSD, and DOM products into server industry. Both a strategic market segment expansion and a practical business growth opportunity are highly anticipated in the next 12-24 months even just with introducing complimenting products into current Innodisk and Actica’s business channels. The long term benefit of this merger is estimated at large multiples of business growth in coming years upon integration of its individual strengths in technology, supply chain management, human resource, customers, infrastructure, manufacturing efficiency, information technology, marketing and brand recognition, and finance.
Under the terms of the agreement, which was unanimously approved by both companies' boards of directors, Innodisk will acquire 100% Actica shares in exchange of Innodisk common stock.
Innodisk is headquartered in Taipei, Taiwan, and has offices in USA, Japan, and China. It has employee of about 200, and has enjoyed solid growth in both revenue and profit last few years, and is with current annual revenue of about 2 billion NTD. Innodisk’s dedicated R&D has already developed full line of server SSD, including 2.5: SAS SSD, Ultra high speed PCIe SSD, eMLC SSD(Enterprise MLC)… and will see immediate penetration of this product line by entering Actica’s sales channel of server customers. Even with its small operation in Silicon Valley, CA, Actica is well known in high end server market in USA, and is strategically alliance with partner like Intel, AMD, ASUS, SuperMicro, Tyan... Actica has been seeing its growth and profit since inception, and is with current annual revenue of about 0.5 billion NTD. Many of its server DRAM modules like high density 16GB registered DDR3 RDIMM will also see a quick penetration into industrial market, by leveraging Innodisk’s existing large customer bases. Both companies have been very profitable and expanding its business at accelerated speed by taking shares of competitions.
Richard Lee, Chairman of Innodisk Corp said, “Taiwan memory module houses have been focusing mainly on PC and consumer markets. Technology and market shift like entering of iPAD has limited the potential growth of revenue and profit with existing business environment. Server market has been major profit generators for company like Samsung and Hynix to offset the lost in PC DRAM markets, during the slowdown of global economy. Despite the effort from Taiwan module houses trying to enter server market, its barrier of technology, industrial know how, and closed channel has been a challenge to many to build a successful business model, or even obtain long term brand and customer trust.
Our merger present great synergy, for our corporate culture is so similar, which is dedicated in technology and long term customer support. Besides, our products and market are also complimenting. We anticipated the merged new identify will create a growth opportunities which will result in a much larger multiples of just compounded existing business scale. It is also a milestone for Innodisk to officially enter server market.” Innodisk has been established since 2005, and now is enjoying its 6th anniversary.
Richard Lee further commented, “We are convinced the cloud computing is the future, and server technology growth will be one of the major contributor to its success, which we may already see it’s happening. Actica brand and product will dedicate the same level of support to its existing customers after the merger, and so it is Actica’s existing management team. With injection of Innodisk’s resources, Actica will enjoy great growth from entering global markets.
We will build a dual product line headquarters organizations for the newly merged identity, with military, industrial, and embedded products HQ in Taiwan, and server products HQ in USA. Our goal is to make Actica No. 1 memory and storage solution provider in integrated server market.”
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“Merger of Innodisk Corp. and Actica Inc. is not only a win-win business cooperation, but the first step to our long term goal of global leadership in Military, Industrial, Embedded, and Server market“, said Richard Lee, Chairman of Innodisk Corp.
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