IBO Technology moves to acquire stake in sensor manufacturer Xingang Electronics
IBO Technology has signed a letter of intent to invest in Shandong Xingang Electronic Technology as part of a strategic push into the Chinese e-cigarette component market.
Hong Kong-listed IBO Technology Company Limited has entered into a letter of intent to acquire an equity stake in Shandong Xingang Electronic Technology. The agreement was reached with Teng Da Cheng, the primary shareholder of the Weifang-based manufacturer.
Xingang Electronics develops and produces acoustic devices, including MEMS sensors and airflow control modules for electronic cigarettes. The company operates R&D facilities across China and Singapore, maintaining partnerships with academic institutions like the Chinese Academy of Sciences. It currently holds over 70 patents and more than 100 proprietary technologies.
The proposed deal remains subject to a satisfactory due diligence process. According to the terms of the intent, the consideration will be based on a valuation not exceeding 20 times the annual net profit of the target company. IBO Technology may satisfy the consideration through a mix of shares, convertible bonds, or cash payments, with a cap on the issue price for any potential consideration shares.
This move aligns with IBO Technology’s broader objective to pivot toward the e-cigarette component industry. The company recently invested in Hangzhou Yixin Micro Technology and appointed industry veterans to its management team, signaling a concerted effort to scale its manufacturing and supply chain capabilities in this niche market.