SANTA CLARA, Calif., Jan. 10, 2018 (GLOBE NEWSWIRE) -- 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 Disclosure
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Sandra Dou, Investor Relations Sr. Manager
Source: Borqs Technologies, Inc.