Gigabyte Technology has revealed plans to sell its server business, which is part of its network communications business group, by the end of this year.
As reported by Taiwan's DigiTimes, the company's network communications business group is currently valued at approximately NT€834 million (€29,95 million) and will be transferred to the wholly-owned subsidiary Giga Computing Technology before 1 January. January 2023.
As part of the deal, Gigabyte will acquire 83,36 million shares of Giga Computing Technology at a price of NT€10 (€0,35) per share. According to the company, neither its daily operations nor its related activities will be affected by the transfer and this also applies to shareholders' equity.
In addition to its server business, Gigabyte's network communications business group also develops AI, high-performance computing (HPC) data centers and edge computing products that it sells in Europe and America. del Norte.
A potential IPO
Gigabyte's plans to spin off its network communications business group suggest the move could lead to an initial public offering later. Others, however, see it as a way for the company to more clearly separate its server and motherboard/graphics card businesses.
When it comes to Gigabyte's revenue stream, graphics cards contribute around 40%, followed by motherboards at 30%, servers at 20%, and others at 10%. The company's consolidated revenue reached NT€14.210 million (€493,91 million) in January, an increase of 27,64 percent from the same period of the previous year.
While Gigabyte expected its server business to grow 50% this year due to its partnership with Russian search engine developer Yandex, Russia's invasion of Ukraine will likely hurt those projections. As a result, the company expects the dispute to affect 5% of its revenue for the year.
We are likely to hear more from Gigabyte about spinning off its server business as we get closer to completing the transfer later this year.
Via DigiTimes