Quanta Computer to acquire stake in U.S. smart glasses brand

Taipei, Sept. 4 (CNA) Quanta Computer Inc., one of Taiwan's leading contract electronics makers, is set to take a stake in U.S-based smart glasses brand Vuzix Corp.

In a statement filed to the Taiwan Stock Exchange (TWSE), where Quanta shares are traded, the company said on Tuesday it will spend up to US$20 million to acquire up to a 19.2 percent stake in Vuzix, which also provides augmented reality solutions.

In the first stage, Quanta Computer plans to acquire 7.692 million common shares in the American smart glasses supplier for US$1.3 per share.

Quanta Computer said it also plans to acquire Vuzix preferred shares in the second and third phases of the purchase scheme. However, the details on the share volume and a timeframe for follow-up acquisitions have not been finalized.

According to Quanta Computer, the second and third stages of the acquisition could be completed over the next year for up to US$10 million. Quanta Computer said the acquisition of Vuzix shares will be a long-term investment.

In November last year, Quanta Computer signed a partnership agreement with Vuzix to access the U.S. tech firm's proprietary waveguide technology and optical display components. This will enable it to roll out the new generation of lightweight smart glasses with shipments slated to start later this year.

In recent years, Quanta Computer has intensified its efforts to strengthen virtual reality and AR technologies to diversify its product portfolio.

On its website, Vuzix, founded in 1997, said its proprietary waveguide technology allows it to design smart glasses with crystal-clear, see-through displays that enable users to access key information virtually while staying grounded in the real world.

Vuzix products include headset devices, wearable devices and other products involving healthcare and national defense. The company operates B2B (business to business) and B2C (business to consumer) business models.

Vuzix, shares of which are traded on the Nasdaq, has offices in Rochester in New York, Oxford in the United Kingdom and Tokyo in Japan.

On Tuesday, Vuzix shares soared 5.12 percent to close at NT$0.907, outperforming the tech-heavy Nasdaq index, which plunged 3.26 percent amid worries over a possible hard landing of the U.S. economy and a 9.53 percent tumble of artificial intelligence chip designer Nvidia Corp.