Getac Technology has announced plans to turn itself into a holding company by spinning off its ruggedized computing, mechatronic and energy businesses.

The company will be renamed as Getac Holdings, and the spun-off business will become wholly-owned companies named Getac (for ruggedized devices) and GTC Solution (for mechatronic and energy), with the changes tentatively set on October 1, 2021.

The business values of the ruggedized computing group and mechatronic/energy group are assessed at NT$500 million (US$17.6 million) and NT$78.991 million respectively, and Getac Technology will acquire 33.334 million stock shares of the former at an equivalent of NT$15 per share and 7.18 million shares of the latter at NT$11 per share.

After the spinning off, Getac will be dedicated to operating Getac-brand business, hiking market penetration for ruggedized computing and police-use imaging solutions, developing more hardware/software-integrated solutions via strategic cooperation.

GTC Solution will focus on operating Getac Technology's existing business on power products, industrial displays, product prototyping services and automation solutions as well as providing design services for electronic and structural components.

The transformation will allow Getac Holdings to function as a platform for the two business groups, automotive component business group and structural component business group under Getac Technology as well as affiliated National Aerospace Fasteners, company chairman and president James Hwang said. The platform can hike overall operational efficiency for the Getac group and enhance its presence and long-term competitiveness, Hwang indicated.

Getac Technology posted consolidated revenues of NT$27.838 billion, gross margin of 27.94%, operating profit of NT$3.116 billion and net profit of NT$2.577 billion, and will distribute a cash dividend per share of NT$3.60 for the year.

It has reported consolidated revenues of NT$1.886 billion for February, decreasing 26.97% sequentially but increasing 28.96% on year, and those of NT$4.467 billion for January-February grew 29.83% on year.