New Energy Systems Group Announces Agreement to Acquire Anytone International (H.K.) Co., Ltd.
November 23 2009 - 8:30AM
PR Newswire (US)
Acquisition Price of $33.7 million in cash and stock Anytone
projected to generate $6.7 million of net income in 2010 NEW YORK
and SHENZHEN, China, Nov. 23 /PRNewswire-Asia-FirstCall/ -- New
Energy Systems Group (OTC:NEWN) (BULLETIN BOARD: NEWN) , a
manufacturer and distributor of battery components in China, today
announced that it has agreed to acquire Anytone International
(H.K.) Co., Ltd. and its wholly owned subsidiary, Shenzhen Anytone
Technology Co., Ltd. (Anytone), a rapidly growing Shenzhen-based
high tech, integrated product research, manufacturing and marketing
company for lithium batteries. New Energy Systems Group will pay
$33.7 million for the company consisting of $10.0 million in cash
and the remaining $23.7 million by issuing approximately 3.6
million shares of common stock based on an average stock price of
$6.60 per share. The company expects to complete the acquisition
before the end of 2009. Anytone generated revenue of $10.1 million
in 2008, a 139.6% increase over the year ended December 31, 2007.
For the nine months ended September 30, 2009, Anytone generated
revenue of $17.4 million and net income of $3.2 million, and
expects to achieve revenue of $24.2 million and net income of $4.5
million for the year ended December 31, 2009. Anytone has
maintained an annual growth rate in excess of 100% over the past
four years. For the year of 2010, Anytone is projected to generate
revenue of $36.2 million and net income of $6.7 million. Anytone
manufactures and sells mobile power resources based on lithium ion
batteries for a full spectrum of products, including mobile phones,
notebook computers, digital cameras, MP4s, PMPs, PDAs, solar and
digital applications. Many of Anytone's products generate 4-7 times
more power than the original OEM battery's capacity. The company's
power sources support some of the best known products in the world,
including Apple's iPod family of products. Anytone had 7 practical
patents and 23 appearance design patents by the State Intellectual
Property Office of the People's Republic of China (SIPO). The
company is also awaiting approval for its new innovation patent by
SIPO. The company has also obtained CE, FCC, 3C, ROHS, UL and other
certifications. For more details, please visit:
http://www.anytone.com.cn/ Mr. Fushun Li, Chief Executive Officer,
commented, "Our planned acquisition of Anytone adds an important
dimension to our business in terms of additional product offerings
and an impressive new customer base. It will also make New Energy
Systems Group a much larger company and enable us to benefit from
economies of scale, including better terms from our customers and
suppliers. We are pleased to welcome key executives from Anytone's
talented management team to the combined organization as well as
Anytone's seasoned and motivated sales force. All of Anytone's
senior executives will remain with the company and we anticipate a
seamless transition." Mr. Li continued, "With a strong track record
of growth and $6.7 million of projected net income for Anytone in
2010, we are quite pleased with the terms of the transaction.
Moreover, the decision by Anytone's owners to receive the majority
of their compensation in the form of equity, illustrates their
confidence in the outlook for our combined businesses. As demand
for mobile devices continues its favorable growth trends in China
and around the world, this acquisition will strengthen our
intellectual property portfolio and further enhance our reputation
in the battery market." About New Energy Systems Group New Energy
Systems Group is a leading manufacturer and distributor of lithium
ion batteries. The company assembles and distributes finished
batteries through its sales network and channel partners. The
company also sells high-quality lithium-ion battery shell and cap
products to major lithium-ion battery cell manufacturers in China.
The company's products are used to power mobile phones, MP3
players, laptops, digital cameras, PDAs, camera recorders and other
consumer electronic digital devices. Additional information about
the company is available at
http://www.chinadigitalcommunication.com/ . Forward Looking
Statements Except for the historical information, the matters
discussed in this news release may contain forward-looking
statements, including, but not limited to, factors relating to
future sales. These forward-looking statements may involve a number
of risks and uncertainties. Actual results may differ materially
based on a number of factors, including, but not limited to,
uncertainties in product demand, risks related to doing business in
China, the impact of competitive products and pricing, changing
economic conditions around the world, release and sales of new
products and other risk factors detailed in the Company's most
recent annual report and other filings with the Securities and
Exchange Commission. For more information, please contact:
Crescendo Communications, LLC David Waldman or Klea Theoharis Tel:
+1-212-671-1020 Email: DATASOURCE: New Energy Systems Group
CONTACT: Crescendo Communications, LLC - David Waldman or Klea
Theoharis, +1-212-671-1020, or Web Site:
http://www.chinadigitalcommunication.com/
http://www.anytone.com.cn/
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