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IMI acquires Speedy-Tech

Posted: 19 Dec 2005 ?? ?Print Version ?Bookmark and Share

Keywords:EMS? Integrated Microelectronics? IMI? Speedy-Tech Electronics?

Philippine-based EMS provider Integrated Microelectronics Inc. (IMI) announced that its merger with Singapore-based EMS and power electronics company Speedy-Tech Electronics Ltd has already taken effect.

"According to the Singapore High Court, this is the first time that this type of a merger agreement transpired between a Philippine-company and Singaporean company, wherein it's a privately-held company taking over a publicly-listed company," said Arthur Tan, president and CEO of IMI.

IMI and Speedy-Tech are engaged in the same business type, but cater to different products and markets in the electronics business. However, both companies will benefit from the resulting enhanced capabilities, broader geographic presence and expanded customer base. "In essence, we've expanded the amount of manufacturing capabilities of what we have across the board to serve the different markets we've targeted," Tan said.

Tan added that there is hardly any overlap in IMI and Speedy-Tech's customer base even though most of the businesses they do serve a similar market.

IMI is a privately-held company based in the Philippines with five design centers in Tustin, California and Alabang, Philippines; and two manufacturing facilities in Laguna and Cebu, Philippines. IMI's OEM customers are in the computing, communications, consumer, industrial and automotive segments.

Speedy-Tech, on the other hand, is an EMS provider with a well-diversified base of customers in the IT industry, consumer electronics, industrial, banking and medical equipments. It has five production facilitiesthree in China, one in Singapore and one in Cavite, Philippines.

Next step: Integration
According to Tan, the next challenge for IMI is to integrate their capabilities, competencies, cultures, management philosophies, systems and processes "to ensure that maximum synergies will be realized." This will involve the establishment of the organizational structure for global functions, integration of HR policies and practices, and integration of culture and management philosophies.

"There really won't be too much reduction in expenses as a result of the merger," commented Maria Rosa Santos, SVP and CFO of IMI. "However, what we see in this merger is getting lower material costs because we have a much bigger scale than before." Santos added that comparing the best practices of both companies would contribute to the overall efficiency.

Tan shared that the merger will also influence IMI's presence in Asia. "We are now considered a regional player. Not many EMS companies can say that they have three sites operating with roughly around 5,000 people and generating positive numbers. It's very hard to do that, but we did," said Tan.

- Tracy Carpena
Electronic Engineering Times-Asia

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