Hon Hai Takes Over Cisco's Mexican Factory

Taipei, Oct. 12, 2011 (CENS)--The Hon Hai Group, currently Taiwan's No.1 manufacturing conglomerate by revenue, yesterday announced it has wholly acquired Scientific-Atlanta Inc. (SA) of Mexico from Cisco Systems Inc. at expense of US$44.94 million.

The Mexican company, staffed with 5,000 employees, supplies transmission networks for broadband access to the home, set-tops, cable modems and digital interactive subscriber systems for video, high-speed Internet, voice over IP (VoIP) networks, and worldwide customer service and support.

Hon Hai said that it purchased the Cisco factory in order to make a push into cloud computing market. Terry Gou, the group's chairman, said at a recent shareholders' conference that the group is gearing up to make foray into the cloud computing market. The group has filled 65% of world market for servers, including the models for cloud computing operation.

Hon Hai closed the deal in July this year, but hadn't announced the transaction until yesterday in accordance with Taiwan's regulations. Hon Hai acquired SA through subsidiary PCE Paragon Solutions.

The group's vice president, Terry Cheng, stressed that Hon Hai has included Cisco among its prime customers and the acquisition will deepen business ties between the two companies.