Quanta Computer Inc (廣達電腦) yesterday said it is to acquire 7.692 million common shares in Vuzix Corp at US$1.30 per share as part of its long-term investment plans in the US-based maker of smart eyewear.
The share purchase plan was announced after the two companies in November last year entered into a partnership agreement to manufacture next-generation lightweight smart glasses with shipments slated to start later this year.
It is its first tranche of investment in Vuzix, Quanta said in a Taiwan Stock Exchange filing, adding that it would acquire preferred shares of Vuzix during the second and third tranches.
Photo courtesy of Quanta Computer Inc
Quanta’s offer of US$1.30 per share represents a premium of about 51 percent on Vuzix’s closing price of US$0.86 on Friday. US markets were closed on Monday for the Labor Day holiday.
Figures for the second and third tranches have yet to be finalized, but would be less than US$10 million, Quanta said.
The company would hold less than a 19.2 percent stake in the NASDAQ-listed Vuzix after the three tranches are completed, with total investments not exceeding US$20 million, it added.
Vuzix, established in 1997 in Rochester, New York, initially made optical products for the military and the US Department of Defense, but shifted to developing consumer-grade virtual reality (VR) products and is now a leading supplier of smart glasses, and augmented reality (AR) and VR technologies and products.
The deepened partnership between the two firms underscores Quanta’s aim of delivering innovative smart glasses products for the broader markets using waveguides and optical display components sourced from Vuzix, the companies said.
Market researcher TrendForce Corp (集邦科技) said Quanta has been bolstering its technical capabilities in the VR and AR domains in the past few years, and its collaboration with Vuzix is aimed at improving its technology capabilities, providing comprehensive solutions and seizing opportunities in the flourishing virtual market.
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