Shanghai (ZXZC)- BYD Company Limited ("BYD"), in conjunction with its subsidiaries known as the "Group," today announced a significant acquisition. Its subsidiary, BYD Electronic (International) Company Limited, ("BYD Electronics") has inked an acquisition framework agreement with Jabil Circuit (Singapore) Pte. Ltd. ("Jabil Singapore"), a subsidiary of Jabil Inc., one of the world's most prominent electronics manufacturing service and solution providers.

Photo credit: BYD Electronics

The agreement aims to facilitate the acquisition of Jabil Singapore's mobile electronics manufacturing business by BYD Electronics. This strategic move comes with an impressive price tag of approximately 15.8 billion yuan (equivalent to US$2.2 billion) in cash. By seizing this opportunity, BYD Electronics is positioned to bolster its core supply chain for consumer electronics, thereby notching up its market share and solidifying its preeminent stance in the industry.

The focus of this acquisition revolves around Jabil Singapore's product manufacturing operations situated in Chengdu and Wuxi cities in China, including the production of components catering to its existing client base.

The definitive agreement outlining the final transaction price, terms, external approvals, restructuring plans, and delivery procedures will be solidified in a separate accord between BYD Electronics and Jabil Singapore.

Jabil Singapore is a wholly-owned subsidiary of Jabil Inc., a publicly listed company on the New York Stock Exchange. The subsidiary specializes in the manufacturing of disk drives, encompassing CD-ROM drives, DVD-ROM drives, optical drives, flash drives, tape drives, solid-state drives, and storage subsystems.

BYD Electronics, recognized as a global leader in platform-based high-end manufacturing, spans a spectrum of sectors encompassing smart phones, tablet PCs, new energy vehicles, smart home technology, game hardware, unmanned aerial vehicles, Internet of Things applications, robotics, communications equipment, and health devices, among other diverse market segments.

Mr. Wang Nianqiang, CEO of BYD Electronics, said "This acquisition will expand the business of smartphone components and mark the beginning of a new cycle of rapid growth. The acquisition will also ensure long-term sustainable development while creating value for customers and shareholders of the BYD Electronics."