Novatek Technology and Faraday Technology announced that they have entered a definitive agreement under which Novatek will acquire Faraday's surveillance business, which includes DVR and IP-Cam SOC and other products, along with related intellectual property, technology and fixed assets.
Novatek Technology and Faraday Technology announced that they have entered a definitive agreement under which Novatek will acquire Faraday's surveillance business, which includes DVR and IP-Cam SOC and other products, along with related intellectual property, technology and fixed asset, for an aggregated acquisition of US$22.5 million (NTD$720 million) in cash. Novatek will process the transaction, based upon the ordinance of the asset acquisition or disposal.
Novatek Technology is a fabless company in Taiwan, specializing in display-centered total solutions ranging from full line of display ICs and SoC for all display applications. It has a comprehensive, self-developed IP portfolio, and has the achievement at the imaging SoC and digital smart surveillance system.
Given the popularity and integraiton of mobile devices and IoT, surveillance industry for the consumer segment has expanded and the home security market continues to be prosperous. With the acquisition of Faraday's surveillance business, Novatek believes that it can strengthen the technology competitiveness of its imaging SOC and IP cameras and completely cover the surveillance product lines from the low-end to the high-end, and further expand its customer's list in China. This will increase the operating scale, improve gross margin, create operating results and competitiveness, and then enhance shareholder's value.