(Yicai Global) Sept. 15 -- Shares of Foxit Software Development Joint Stock plunged after the Chinese developer of PDF applications said it will pay USD28 million to acquire AccountSight, a debt-laden electronic signature startup based in the United States.

Foxit Software [SHA:688095] slumped 7.2 percent today to close at CNY179.10 (USD27.84), after earlier falling as much as 8.9 percent. The wider Shanghai market came off 0.2 percent.

DocuSavvy Technologies, a Cayman Islands-incorporated firm wholly owned by Foxit, will make the purchase, Fuzhou-based Foxit said in a statement released yesterday. The acquisition will enable Foxit to seize new opportunities in the paper-free information technology market, it said.

AccountSight had negative net assets of USD772,500 and total assets of USD564,200 as of May 31, Foxit said, adding that asset appraiser Kunyuan Asset valued AccountSight's total shareholders' equity at USD30.5 million.

The Shanghai Stock Exchange also wrote to Foxit yesterday, asking it to disclose more financial and business data on AccountSight, and explain the necessity and rationality behind the high-premium, overpriced and high-goodwill acquisition. Foxit has not yet replied.

AccountSigh’s products and technologies can accelerate the shift by Foxit’s core products to a subscription-based model, quickly increase subscription income and push forward Foxit's transformation to a Software-as-a-Service model, the company said in its statement.

Established in 2014, AccountSight is co-owned by founders Mahender and Anita Bist. It mostly provides small and mid-sized businesses with signature services with various application scenarios such as contract signing, form filling, project approval and document release.

ESign Genie, an Indian firm 99percent owned by AccountSight that mainly provides research, development and technical support to AccountSight, will become a Foxit subsidiary following the acquisition, the Chinese company said.

Editor: Futura Costaglione