SANTA CLARA, Calif., Jan. 22, 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 an agreement to acquire 13.8% of both Shenzhen Crave Communication Co., Ltd (“Crave”) and its affiliated business entity in Hong Kong, Colmei Technology International Ltd (“Colmei”).
Crave, a manufacturer of mobile terminal devices, was formed in 1996 and incorporated in 2008 in Shenzhen, China. With multiple high speed SMT lines, assembly lines and packaging lines, its annual capacity reaches over 20 million units. Ideally situated in Shenzhen, Crave exports final products for customers in South America, India, Indonesia, the Philippines and Vietnam. Colmei, Crave’s affiliated entity under common ownership, is a sales entity located in Hong Kong with established relationships with international banks to facilitate transactions with its global clients. Both Crave and Colmei are privately owned. In 2017, Borqs has contracted Crave/Colmei for multiple projects in the manufacturing of Borqs’ products.
On January 18, 2018 the Company agreed to acquire shares representing 13.8% of both Crave and Colmei, for $13 million, consisting of $3 million in Company ordinary shares to be issued at closing and $10 million in cash to be paid over 3 years.
Pat Chan, the CEO of Borqs: “Our investment into Crave and Colmei will benefit us in multiple ways: i) ensure access to valuable manufacturing capacity, ii) assist us with supply chain financing by leveraging their resources with financial institutions in Hong Kong, iii) improve negotiation leverage with component suppliers based on Crave’s purchasing volume, and iv) providing premium quality manufacturing.”
Mr. Xilin Fang, Chairman of both Crave and Colmei, said: “The investment from Borqs, a Nasdaq listed company with strong R&D capabilities, is an endorsement by itself. The innovative designs that Borqs brings to market will add attraction to our products within this highly competitive mobile communications industry. I believe the combination of Borqs, Crave and Colmei will be a win-win for both companies.”
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
This 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.
Sandra Dou, Investor Relations Sr. Manager
Source:Borqs Technologies, Inc.