Dane-Elec Follows Restructuring Plan
Acquisition by Gigastone provide deep R&DOctober 18, 2013 By Jeff O'Heir
When French memory manufacturer and distributor Dane-Elec filed for bankruptcy protection last year, it pledged to quickly reorganize. The company continues to carry out that plan following its recent majority acquisition by Gigastone, a Taiwanese-based manufacture of mobile, networking and flash solutions. The minority shareholder is New Dane, a European investment group.
Going forward, Dane-Elec will leverage Gigastone's 60-member engineering team, which now works from a new 50,000-square-foot factory in Taiwan, to improve existing products and to develop new lines, said Michel Hassan, Dane-Elec's general manager. Gigastone, in turn, will use Dane-Elec's retail and distribution partnerships to drive its products into the U.S. markets.
"Gigastone decided to acquire Dane-Elec to speed up its presence in the U.S.," Hassan said. "You will see more synergy in sales, as well as new products and greater availability. We're giving them a nice funnel."
Retailers can expect new Gigastone memory, storage and mobile products to hit the streets next spring.
Dane-Elec products (such as its Media Streamer) will continue to sell through Target, Walmart and other mass merchants, while Gigastone will position products like its Smart Box as step-ups through Fry's and other specialty retailers. The next generation of those personal cloud streamers will be showcased at CES. Dane-Elect will also upgrade its My-Ditto family of storage devices in the spring.
Although the company has only been around for about three years, Gigastone is one of the top manufacturers of storage and flash products in Asia, Hassan said. While the new partnership should produce a fresh line of mobile products, Hassan hopes the Gigastone connection will help Dane-Elec improve its share of the flash storage market.
"They've found the secret sauce in flash," Hassan said. "We want to bring that recipe to the U.S. market to produce better, lower priced, faster products."