Publish Date : 12-Apr-2013
Hollysys Automation Technologies, Ltd., a leading provider of automation and control technologies and applications in China, announced today that it has successfully completed its acquisition of Bond Corporation Pte. Ltd., and its group of companies ("Bond").
The total consideration for the acquisition is approximately US$ 73 million, with payment 50% in cash and 50% in stock. The stock will be issued to Bond shareholders in three amounts over two years based upon a mutually agreed two-year incentive program. Additional ordinary shares, as a premium on performance, will be issued to the Bond shareholders if Bond outperforms the established targets, but the premium will not exceed 15% of the total incentive shares in any case. Hollysys and Bond have agreed upon the compensation and incentives to be given to the management team of Bond to maintain the team stability after the acquisition.
Bond provides mechanical and electrical solutions with end to end capabilities in design, engineering, procurement, project management, construction and commissioning, and maintenance to a wide array of industries, including factories, data centers, banks, hospitals, airports, power stations, gas and instrumentation plants, hotels, commercial centers, residential buildings and infrastructure works in Southeast Asia. Bond has a strong market presence, close client relationships, and a highly renowned brand name recognition.
Dr. Changli Wang, CEO and Chairman of Hollysys, commented: "We are very pleased that the acquisition of Bond is now successfully completed. The seasoned and experienced management team will remain intact, and the daily operation of Bond will not be impacted by the acquisition transaction. Bond has demonstrated its penetration and implementation capability from its track record and will continue to spread its operational foot print throughout Southeast Asia with Hollysys as its backbone supporter."
Mr. Yap Choong, Executive Director of Bond, said: "The response from our clients and employees is overwhelmingly positive. We are very happy and proud to be part of Hollysys, the leading provider of automation and control technologies and applications in China. With Hollysys' brand name and R&D, customization and production capability, we are in a better position to generate returns to our owner and share holders."
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