Santa Clara, California. (January 22, 2018) – 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 (堡垒之夜ios国服官网 www.jiaaj.icu).
Forward-Looking Statements Disclosure
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Sandra Dou, Investor Relations Sr. Manager