Further Diversifies its Business and Revenue Stream
HONG KONG -- Oct. 31, 2018 -- SMIT Holdings Limited ("SMIT" or the "Company," together with its subsidiaries, the "Group") (stock code: 2239), a world leading CAM supplier and a major mPOS supplier in China, has announced its new acquisition of S2C Tech Inc. ("S2C"), a hardware-based verification systems and software companies, to further diversity its business and revenue stream.
According to the agreement, the Group agreed to acquire 19,042,988 ordinary shares representing approximately 86.36% interest in the share capital of S2C on a fully diluted basis, at the maximum cash consideration of US$19,000,000, plus up to US$2,000,000 at the maximum in milestone based payments to the key management team.
S2C has been successfully delivering hardware-based rapid verification solutions since its establishment in 2003. S2C provides 1) rapid hardware-based verification system and automation software; 2) Prototype Ready™ IP, interfaces and platforms; 3) System-level design verification and acceleration tools. With over 400 customers and more than 2000 systems installed, S2C's focus is on SoC/ASIC development to reduce the SoC design cycle. Its highly qualified engineering team and customer-centric sales force understands users' SoC development needs. S2C systems have been deployed by leaders in consumer electronics, communications, computing, image processing, data storage, research, education, automotive, medical, design services, and silicon IP. S2C has offices and distributors around the globe including in the US, UK, Israel, mainland China, Taiwan, South Korea and Japan.
Mr Shuai Hongyu, President of SMIT, said, "S2C is a well-established company principally engaged in rapid hardware-based verification systems and software for over 15 years. It has strong presence in mainland China, Japan, South Korea and Taiwan. The acquisition added a new and strategically important component to our ongoing business development and helps us to quickly tap into this new industry. It is also in line with our overall investment strategy in the high-technology sector, representing a good opportunity for us to broaden our revenue stream. Through SMIT's new investments, S2C will be able to accelerate new product developments and provide superior customer support."
About SMIT Holdings Limited (Stock code: 2239)
SMIT Holdings Limited is a leading security devices provider for pay TV broadcasting access worldwide and for mobile point-of-sale, or mPOS, payment systems in China. The Company's main product types are CAMs and mPOS devices. The Company is a leading CAM provider globally and a major mPOS supplier in China.