(Yicai) May 14 -- Chinese urban landscape lighting provider Luoman Technologies will spend GBP22.8 million (USD28.6 million) to become the controlling shareholder of UK immersive media firm Holovis International.

Luoman decided to acquire a 40 percent stake in Holovis from Chinese property developer Road King Infrastructure and another 45 percent stake from Holovis’ executives, the Shanghai-based buyer said in a statement late yesterday, after completing the due diligence on the target company.

Luoman announced plans to acquire Holovis last November but did not disclose the transaction value as it had not yet conducted the due diligence.

The acquisition will help Luoman improve its core competitiveness in the digital cultural tourism, augmented reality, and virtual reality fields, and enhance its research and development advantages in immersive experiences, dynamic capture, virtual simulations, and interactive technologies, Luoman noted yesterday.

Holovis is mainly engaged in the design and application of immersive experience systems, development of AR and VR systems and digital cultural creative software, and digital cultural creative content application services, Luoman said. Universal Picture, SeaWorld, Norwegian Cruise Line, Lego Group, and Saudi Entertainment Ventures are among Holovis’ main clients.

Last year, Holovis achieved revenue of GBP31.7 million, down 12 percent from the previous year, and it recorded a net loss of GBP2.1 million (USD2.6 million) in 2023, expanding the loss for about 61 percent from 2022, according to Luoman.

Luoman and Holovis are long-time partners. The pair set up a 70:30 joint venture to develop original VR travel experiences in November 2021. Moreover, Luoman paid Holovis CNY7.8 million (USD1.1 million) to design innovation services last year and CNY9.9 million for tech licensing rights the year before.

Luoman’s shares [SHA: 605289] were trading down 1 percent at CNY32.23 (USD4.45) as of lunch break in Shanghai after opened the day up near 3 percent today.

Editor: Futura Costaglione