Acer ties up with HP to boost presence in domestic biz computer market

Taipei, Sept. 10, 2003 (CENS)—HiTrust Co., an electronic commerce subsidiary of Acer Group, recently announced it has offered NT$250 million (US$7.33 million at US$1:NT$34.1) to acquire a 53% stake in Ivan Information Technology Company, the sales agent of the U.S.-based Hewlett Packard Corp. (HP)

The investment project was jointly announced by Acer President J.T. Wang, HiTrust Chairman H.W. Lee, Ivan Chairman Ewen Chen, and President Lai Chao-hui of HP's system business group.

With the acquisition of the Ivan shares, Acer intends to tie up with HP to beat IBM as the largest provider in the local commercial computer market.

Ivan was founded in 1992 in Taipei by former management team of HP computer system department and chaired by Ewen Chen. Viewing the impacts of rapid evolution of information technology and industrial environment on the global commerce, Ivan has been focusing its business on helping customers apply information technologies to their industrial competition.

With the acquisition of shares in Ivan, HiTrust will focus on software services to offer broader e-commerce software services to domestic manufacturing and financial sectors through Ivan's distribution channels and value-added hardware services.

HiTrust specializes in providing such services as Internet security certification, e-payment and e-account management with over 1,000 well-known corporate clients worldwide and 30-strong clients in the domestic financial sector, while Ivan is famous for its ability to provide hardware services to over 2,000 enterprise clients.

At present, HiTrust and Ivan are seeking the integration of product lines, technologies, customers' relationship, personnel and corporate resources between each other.

"In the future, Acer Group and HP will be complementary partners, not competitors," said Acer's J.T. Wang. "Under this situation, HiTrust will have more chance to solidify its leadership in the greater China e-commerce arena."

HiTrust Chairman H.W. Lee said his company will seek investment opportunities in the e-commerce sector across the Taiwan Strait. The company will gradually boost its stake in Ivan from the current 53% to 60% in the foreseeable future.

Currently, HiTrust has decided to set up two research and development centers in Taichung, central Taiwan and Hangzhou of Zhejiang Province, mainland China, respectively. "I hope the proposed R&D center in Hangzhou will recruit 300 employees by 2005," Lee noted.

HiTrust plans to list on the stock exchanges in the U.S., Hong Kong, or Singapore. Ivan is preparing to get listed on the ROC over-the-counter securities market next year.