According to the financial news app, Gigadevice Semiconductor Inc. (603986.SH) announced that the company plans to acquire 70% of Suzhou Saixun Electronic Technology Co., Ltd. (referred to as "Suzhou Saixun") held by all shareholders of Suzhou Saixun in cash together with Hefei Shixi Gigadevice Smart Business Investment Fund (Limited Partnership) (referred to as "Shixi Capital"), Hefei State-owned Capital Venture Capital Co., Ltd. (referred to as "Hefei State-owned Investment"), and Hefei Guozheng Duose Industry Investment Partnership Enterprise (Limited Partnership) (referred to as "Hefei Production Investment").

According to the evaluation by Peking Zhuoxin Dahua Asset Appraisal Co., Ltd. of the 100% equity of Suzhou Saixun as of the reference date (i.e., June 30, 2024), the evaluated value is 831.1947 million yuan; with reference to the evaluation value, the transaction price of 70% equity of Suzhou Saixun is determined to be 581 million yuan; among them, the company will purchase approximately 38.07% of Suzhou Saixun's shares for about 316 million yuan in cash, Shixi Capital will purchase about 12.05% of Suzhou Saixun's shares for about 100 million yuan in cash, Hefei State-owned Investment will purchase about 18.07% of Suzhou Saixun's shares for about 150 million yuan in cash, and Hefei Production Investment will purchase about 1.81% of Suzhou Saixun's shares for about 15 million yuan in cash.

It is reported that analog chips are a key part of the company's global strategy, and this transaction is an important move to drive the company's analog strategy. The target company specializes in the research and development, design, and sales of analog chips, with main products including lithium battery protection chips and power management chips. They have certain accumulation in battery management-related technology, processes, and manufacturing, and their products are competitive in terms of packaging size, product performance, stability, and cost. The target company's products are mainly used in mobile power, smart clothing, and other general fields, and are already used by many well-known end customers.

The target company has relatively leading products, stable customer relationships, and a certain brand reputation in the single-cell lithium battery protection field; battery-level lithium battery protection products are expected to continue growing in the future; other products such as multi-cell lithium battery protection, fuel gauges, power management chips, etc., also have strong synergy with the company in terms of market, customers, and supply chain. Through this acquisition, the company can further strengthen the analog team's capabilities, enhance battery management-related technical reserves, continue to expand related product lines, explore new markets, help support the long-term development of the company's analog business in terms of sales scale, product depth and breadth, and enhance the overall competitiveness of the company.