Acer expands AIoT business with new acquisitions

TAIPEI - Acer (TW:2353) Incorporated (TWSE: 2353) has announced the acquisition of a significant stake in Enrich Investment Inc. and the entirety of Embedded City Limited (ECL) common shares, with a total investment not exceeding NTD 3.45 billion. This strategic move, announced Today, is set to bolster Acer’s presence in the AIoT (Artificial Intelligence of Things) sector and enhance its B2B business operations.

The transaction enables Acer to indirectly gain full control of Embedded City Taiwan Limited (ECT), a subsidiary of both Enrich Investment and ECL. ECT holds all of Posiflex Technology’s preferred shares, which translates to approximately 29.0% of Posiflex’s total common and preferred shares issued. This acquisition is a continuation of Acer’s investment strategy, following its acquisition of 10.8% of Posiflex Technology’s preferred shares through indirect investments early last year.

Acer’s board resolved the acquisition, basing the decision on price recommendations from independent experts and the company’s engaged CPA. The payment for the share purchase will be made in full upon the closing date of the transaction, with confidentiality being one of the key restrictive covenants in the contract.

This acquisition is expected to accelerate Acer’s AIoT industry presence, particularly by facilitating potential collaborations with Posiflex Technology and its subsidiaries on embedded systems and O2O commerce solutions globally. Posiflex Group’s Scenario-Defined Appliance (SDA) business model, which delivers fully integrated solutions across various service areas, is anticipated to benefit from Acer’s global network and service infrastructure.

Acer’s investment in Enrich and ECL represents a significant portion of its assets, with the current ratio of securities investment to individual total assets standing at 63.30% and to consolidated shareholder’s equity at 127.51%. The company has stated that there are no dissenting opinions from directors regarding this transaction, and it does not involve any related parties.

The acquisition is part of Acer’s broader strategy to leverage its scale and experience to support the sustainable development of Posiflex, in collaboration with Esquarre Capital and the founding families of Posiflex. The information regarding this acquisition is based on a press release statement from Acer Incorporated.

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