Borqs Technologies Signs Letter of Intent to Acquire Electric Vehicle Control Company
January 10 2018 - 9:00AM
Borqs Technologies, Inc. (Nasdaq:BRQS) (the “Company”), a global
leader in embedded software and products for the Internet of Things
(IoT), announces the signing of a Letter of Intent (“LOI”) to
acquire 60% of Shanghai KADI Machinery Technology Co., Ltd
(“KADI”).
KADI was found in 2006 and develops embedded
software and hardware for core electric control modules of electric
vehicle (“EV”). KADI’s current products include DCDT (boost
function), OBC (charger system), BMS (battery management system)
and VCU (main controls). Since its formation, KADI has
partnered with the leading automotive companies of China, including
Geely Auto, TRW, Chery, Dong Feng Motors, and Shanghai Volkswagen.
The founder of KADI, Dr. Hu Lin, is a veteran in China’s automotive
industry with near 20 years of professional experience working with
world-renowned entities including Volkswagen and Delphi.
KADI has been awarded a Rmb 320 million (US$48.5
million) supply contract for its core electric control modules from
a key automotive contractor in China, Shenzhen Espirit Technology
Co., Ltd. The products are to be delivered between 2018
through 2020 and include all of KADI’s software imbedded modules of
DCDT, OBC, BMS and VCU.
The Board of Directors of Borqs sees synergy
between KADI’s products and Borqs’ existing automobile
in-vehicle-infotainment (IVI) solutions, in terms of sales and
distribution, and R&D. Borqs anticipates that the experience of
Borqs’ software engineers will enhance KADI’s R&D capabilities
while Borqs’ supply chain management team will ensure efficient
delivery of the hardware module products. The consideration
proposed to be paid by Borqs for 60% of KADI involves $15 million
in cash and shares distributed over three years. Borqs is
contemplating a public offering of shares in the coming months to
support the cash investment needs for this acquisition.
Pat Chan, the CEO of Borqs: “KADI has strong IP
related to core electric control modules for electric vehicles.
Our acquisition of KADI will enhance Borqs’
internet-of-things solutions for automobiles and provide a
comprehensive product line of IoT modules for electric vehicles. I
trust that we are only seeing the tip of the iceberg for IoT
products in this industry.”
Hu Lin, the Chairman and General Manager of
KADI: “With rapid developments in the new electric vehicle industry
in China, KADI believes the strategic investment from Borqs will
greatly augment our overall strengths, and particularly in
combination with Borqs’ existing intelligent
in-vehicle-infotainment technologies, will create a real win-win
scenario.”
About Borqs Technologies,
Inc.Borqs Technologies is a global leader in software and
products for the IoT, providing customizable, differentiated and
scalable Android-based smart connected devices and cloud service
solutions. Borqs has achieved leadership and customer recognition
as an innovative end-to-end IoT solutions provider leveraging its
strategic chipset partner relationships as well as its broad
software and IP portfolio. The Company designs, develops and
provides turnkey solutions across device form factors such as
smartphones, tablets, smartwatches, trackers, automotive IVI, and
vertical application devices (for restaurants, payments etc.). For
more information, please visit the Company’s website
(www.borqs.com).
Forward-Looking Statements
DisclosureThis press release includes “forward-looking
statements” that involve risks and uncertainties that could cause
actual results to differ materially from what is expected. Words
such as “expects”, “believes”, “anticipates”, “intends”,
“estimates”, “predicts”, “seeks”, “may”, “might”, “plan”,
“possible”, “should” and variations and similar words and
expressions are intended to identify such forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking. Such forward-looking statements
relate to future events or future results, based on currently
available information and reflect our management’s current beliefs.
Many factors could cause actual events or results to differ
materially from the events and results discussed in the
forward-looking statements, so the reader is advised to refer to
the Risk Factors sections of the Company’s filings with the
Securities and Exchange Commission for additional information
identifying important factors that could cause actual results to
differ materially from those anticipated in the forward-looking
statements. Except as expressly required by applicable securities
law, the Company disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
ContactSandra Dou, Investor
Relations Sr. ManagerEmail: sandra.dou@borqs.net
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