TUS International acquires automotive division from Telit
(28 February 2019- Hong Kong) TUS International Limited (“TUS International” or the “Company”; stock code: 872.HK; together with its subsidiaries, the “Group”) announced on 27 February 2019 that the Group’s acquisition of Telit’s automotive division (the “Target Company”) has been completed upon the satisfaction of all the precedent conditions and the Target Company and its subsidiaries have become the wholly owned subsidiaries of TUS International. TUS International announced the acquisition of Telit’s automotive division with US$105 million (around HK$824 million) on 12 July 2018 in the hope of further strengthening the Group’s intelligent driving system business.
The Target Company involved in this acquisition is a world-famous communication chip and solution provider who enjoys a leading position in the field of automotive communication modules. Upon the completion of the acquisition, TUS International will make a step forward in the development of intelligent driving business and its cloud control technology based on communication module SoC (System on a Chip) ability will be enhanced. Besides, the Company will see remarkable improvement in its business network, industrial scale, financial performance, technological capability and talent reserves, while its comprehensive strength and influence in the intelligent and connected vehicle industry will be increased as well. According to the estimation by Everbright Securities, TUS International’s sales revenues and net profits will exceed HK$1,813 million and 93 million respectively in 2019 following the completion of the acquisition.
About Target Company - TELIT AUTOMOTIVE SOLUTIONS NV
TELIT AUTOMOTIVE SOLUTIONS NV is the main supplier of automotive connectivity module globally, who defines the automotive-grade wireless connectivity standards for European Market. The product portfolio of the Target Company covers different network technologies in 3G, 4G/LTE and LTE-A and it has already made progress on V2X and 5G technology. Customers of the Target Company are mainly blue-chip OEMs and tier one supplier with a record of successful product implementation with over 5 million cars using TELIT’s connectivity modules. The Target Group has research and development (“R&D”) centres in France, Belgium and Israel with an experienced R&D team which accounts for more than 75% of the total number of employees. The Target Company recorded an increase of annual revenue from HK$250 million in 2015 to HK$500 million in 2017 with a CAGR of 42.1%. EBITDA of the Target Company reached HK$70 million in 2017, with a CAGR of 47.2% from 2015 to 2017. As of 31 March 2018, the orders on hand of the Target Company for 2018 to 2020 amounted to US$380 million (equivalent to HK$2,980 million).
About TUS International Limited
TUS International Limited is a leading provider of camera-based ADAS solutions in China as well as a provider of autonomous driving cloud control solutions. It is dedicated to developing the full-stack autonomous driving system and also the vehicle-cloud computing autonomous driving solutions. The Group’s camera-based ADAS solution products have a market share of 37.9% and it is developing ADAS solution with sensor fusion involving camera and millimeter wave radar. With excellent R&D capabilities, a wide range of products and a diversified customer base, ADAS business will generate handsome sales revenues for TUS International as ADAS products are getting more popular in China’s automobile market.
TUS International has been actively implementing China’s strategy of intelligent connected vehicles. The Group, on one hand, unites leading OEMs of the industry and responds to the promotion of the Ministry of Industry and Information Technology to establish the National Innovation Center of Intelligent Connected Vehicles. On the other hand, the Group is also actively participating in the preparation of the innovation platform of intelligent connected vehicles under the National Development and Reform Commission. The Group is also the pioneer in intelligent connected vehicles cloud control technology, who actively promotes the development of “smart driving technology based on connected vehicles” and builds a national intelligent vehicle cloud platform. In May 2018, the Group established the first Intelligent Connected Vehicle Cloud Foundation Platform (Shanghai) Pilot Base in China with application demonstration and commercial application of cloud foundation platform. The demonstration project obtained the “capital support” under the National Development and Reform Commission’s “Project to Enhance Core Competitiveness of Manufacturing Sector 2019” in December 2018.