Inventec, a Taiwan-based notebook and other IT products ODM, and its affiliate Inventec Appliances, a maker of handsets and wireless communication devices, on March 22 jointly announced that the former will combine the latter through exchange of 1.68 Inventec shares for one Inventec Appliances share, with the combination expected to be effective on October 7, 2011.

Inventec will issue new shares for the exchange of its 43.79% stake in Inventec Appliances as well as to acquire the remaining 56.21% stake from other shareholders. While Inventec Appliances will be delisted from the Taiwan Stock Exchange after the combination, it will maintain independent operation, Inventec pointed out.

The combination is to integrate Inventec Appliances' expertise in network, wireless and mobile communications with Inventec in the IT field to create synergies, including acquisition of the former's patents and intellectual property, the latter emphasized.

Inventec Appliances was originally a PDA business unit under Inventec and spun off in May 2000 and then listed in October 2005.