On August 1, Reading-based EIT Group Plc established a subsidiary in Munich, Germany, with the help of Magic Systeme Und Peripherie Vertriebs GmbH. In accordance with German law, this should be fully established and able to operate by October 15. Magic’s business traditionally has centred around setting up operations in Germany for other companies, but when EIT started looking around for local partners, Magic decided to take up the offer itself this time. Magic owns 75% of shares to EIT’s 25%, but EIT has the option to buy the outstanding equity within three years. Magic is also to have three directors on the board as opposed to EIT’s one, with Gerhard Siedler, a partner in Magic, as managing director. The new company is to be called EIT GmbH, and is intended to build on EIT’s existing German customer base as well as taking on the marketing activities for EIT’s products in the European marketplace. Some 90% of its business is to focus on selling EIT’s products and the remaining 10% on selling Apple Computer Inc’s and Chatsworth, California-based Packard Bell Inc’s offerings.
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