Han's Laser buys scanning and inspection company Nextec
Shenzhen, China--Han's Laser Technology, a Chinese supplier to Apple, bought Nextec Technologies (Tirat Hacarmel, Israel) to expand in the market for laser measurement devices used in the auto and aircraft industries. Nextec offers laser 3D scanning and inspection/metrology technology. Gao Yunfeng, president of Shenzhen-based Han's Laser, said the company paid a "few million U.S. dollars" for privately held Nextec, without elaborating further. The acquisition size was below $10 million, Bob Dodds, founder of DRP Capital, financial advisor to the Chinese company on the deal, said in an e-mailed response.
Chinese companies are expanding abroad amid slower growth at home. Han's Laser's shares have gained 53% this year compared with a 21% advance for the Shenzhen Composite Index.
China's outbound investment jumped 20% to $69.5 billion in the first 10 months of the year, Ministry of Commerce data showed last month. Overseas investment may reach $100 billion this year and exceed foreign direct investment in the near future, Commerce Minister Gao Hucheng was cited by the People's Daily as saying in November.
Nextec would be a "small but highly strategic acquisition" for Han's Laser, and would help the Chinese firm boost its capabilities in research and development and expand into markets outside of China, Dodds said. Han's Laser also plans to support the growth of Nextec in Israel, China and other markets, he added.
SOURCE: Bloomberg Technology news; http://www.bloomberg.com/news/2013-12-12/han-s-laser-buys-israel-s-nextec-in-overseas-expansionhan.html