(Yicai Global) Dec. 21 -- Shares of Chinese smart vehicle technology developer ArcherMind Technology jumped this morning after it announced it will set up a joint venture to devise smart car software with German global auto giant BMW.

ArcherMind [SHE:300598] traded 5.88 percent up at CNY117.12 (USD17.84) in midmorning.

The company will form the JV to develop automotive software with BMW’s China arm. Its registered capital will be CNY50 million (USD7.61 million), ArcherMind, which is based in Nanjing, the capital of eastern Jiangsu province, said in a statement it released on Dec. 18, adding the pair will each contribute CNY25 million in cash to take equal shares.

The JV will focus on software and related services, with BMW and its affiliates as its only customers, per the statement, which skipped further details.

BMW’s China operation will own 51 percent of the voting rights in the JV’s shareholders’ meeting, the statement added, with ArcherMind having the rest.

BMW China has an option to buy back all ArcherMind’s shares at a price the parties will fix 60 days after the JV’s fifth and 10th anniversaries, the statement said.

ArcherMind is thrilled to become the partner of BMW in terms of its strategy of in-car digitization, said Wang Jiping, its board chairman. The company will transfer technology and experience amassed over the years to the JV to help BMW provide better driving and user experiences for its customers.

ArcherMind mainly plies three businesses, a technical services line that outsources software technicians to provide technical development, consulting and support services, and a software customization service, and software and hardware development and sales.

Editor: Ben Armour