August 18, one of China’s largest mobile phone design company TechFaith (Nasdaq: CNTF) announced in cash and stock acquisition of domestic smart phone manufacturers QIGI Future Technology (Beijing) Co., Ltd. (hereinafter referred to as Qi base) .
Specific transaction program: TechFaith will be $ 500,000 in cash and approximately 6,590 shares of common stock acquired Qi-way technology, the part of ordinary shares equivalent to approximately 440 million American depositary receipts, the total value of $ 12.5 million.
"Qi base has its own brands and channels, TechFaith has a strong R & D strength, I think both sides can achieve a good complement." August 18, Dickson, senior vice president of wireless Jichang Xi told reporters after the completion of the acquisition, Qi-TechFaith will become a sub-brand, and become a subsidiary of independent operations.
Qi main industry group is based on the Windows operating system for smart phones in the development, manufacturing and marketing, development in the field of smart phones, with GSM, CDMA, WCDMA, TD, more than 2.5G-3.5G platform development technology, while at the double mode dual standby smart phone product areas also layout.
In fact, before the acquisition, Qi-TechFaith has been launched in cooperation with the phone. Under the terms of the transaction, acquisition of shares issued will be based on performance-based Qi, including the latter in fiscal 2010 and fiscal 2011, respectively, achieved $ 8,000,000 and $ 10 million in profits.
Qi-based vice president of technology Rao Xiaobo told reporters Qi-based mobile terminals, operators and industry custom account for half the proportion of the remainder directly to consumers, "Qi-based technology will get more financial and technical support."
"After the acquisition Qi group, is expected to give TechFaith bring higher profits." Jichang Xi said, according GARTNER relevant statistics, last year the smart phone market grew by 27%, and with the domestic development of 3G, this market will have better performance.
It is worth noting that, due to TechFaith’s customers are mainly mobile phone company, the acquisition will affect Qi-whether its relationship with other clients?
In this regard, Jichang Xi said that the reason to Qi base as an independent brand, mainly in order to increase profits, because the previous TechFaith many good design products, but no customers pay, so you can not go on sale, when there own brand after these products will be able to Qi-marketed brands and channels.
"We have different customers customized products, among both the Qi-based or client, their products have a difference." JI Changxi said Qi-brand just add the company’s business, the company’s core business is still through the ODP (original design products) way to end production of mobile phones to provide services.
This year, TechFaith merger moves constantly. August 11, TechFaith Beijing’s core semiconductor to $ 50 million to buy a cheap mobile phone chipset Freescale department. Freescale was Motorola’s semiconductor division, now the world’s 13th largest IDM (integrated device manufacturers) manufacturers. |
