EDI acquires Nova in share-swap deal

Taipei, Feb. 13, 2003 (CENS)--Taiwan's EDI Technology Inc. announced yesterday that it has acquired Nova, the largest 3C (computer, communication, and consumer electronics) distributor in Taiwan, for NT$76.5 million (US$2.2 million at US$1:NT$34.8).

EDI is a leading provider of information technology (IT) solutions, with interests in information security, storage and systems integration. The company aims to provide a complete range of IT products and services for enterprises in the greater China market.

EDI acquired Nova through a 1:1 share-swap with Nova. The acquisition will increase EDI's capitalization to over NT$400 million (US$11.49 million) from NT$330 million (US$9.48 million) currently.

EDI's major shareholders include Quanta Computer Group (20% shareholder), Yulon Group (20%), Koo's Group (8%), and Jafco Ventures of Japan (8%). EDI set up a subsidiary called Shanghai EDI Computer Technology Inc. in mainland China several years ago. Currently, Shanghai EDI has 10 branch offices in major mainland cities and is a major dealer of IBM storage systems there.

Nova is one of the oldest 3C distribution chain stores in Taiwan. It currently operates nine sales outlets and has over 200,000 members throughout the island. Nova is also one of the few profitable 3C distributors in Taiwan's fiercely competitive market.

EDI plans to utilize Nova's distribution brand, resources and large member base to tap systems integration business, especially among small and medium enterprises. EDI said that the acquisition of Nova would make it Taiwan's only company to combine systems integration capability and an island-wide sales network.

EDI said that more and more IT production groups are jumping into the IT distribution business to connect with end users and more closely follow market trends. Both goals can be reached with the help of a successful sales outlet chain, it said.