China

Thunder Software Technology Plans to Acquire MM Solutions AD for € 31 Mln

Summary:

  • Thunder Software Technology (300496.SZ) plans to acquire a 100% stake in MM Solutions AD for 31 million Euro, according to cnfol.com.
  • The deal would be an all-cash transaction.

Why It Matters:

  • MM Solutions AD is based in Bulgaria. Its major business is the provision of computer vision in cellphones and automobiles. During the first nine months of this year, the company’s net profit was BGN 6.12 million.
  • Thunder Software Technology is in the business of developing operating systems for smartphones. The revenue of the company increased 27% during the first nine months of the year to RMB 700  million and net profit dropped 26% to RMB 73 million due to rapidly increasing development costs.
  • Thunder Software Technology is planning to launch auto-smartphone integrated systems in 2018 and the merger will yield a competitive technology and a larger customer base.