(Yicai) Dec. 10 -- Tianyouwei Electronics, a leading Chinese maker of automotive instruments, announced it will acquire German high-end auto parts supplier Krämer Automotive Systems.

Tianyouwei will buy Krämer from MS-ONE Holding for EUR1 million (USD1.2 million), the Heilongjiang province-based firm said in a statement yesterday, adding that the acquisition will not involve any changes to the management of the target company.

Krämer researches, develops, and manufactures in-vehicle infotainment systems, digital cockpits, and connected car solutions. It counts high-end European automakers, such as Porsche, Land Rover, and Jaguar, among its clients.

However, due to its ongoing losses and a significant decline in first-half revenue, Krämer was in a state of insolvency at the end of June, with total assets of CNY13 million (USD1.8 million), and total liabilities of CNY19.5 million, according to Tianyouwei.

The businesses of Tianyouwei and Krämer can create a synergistic effect. Moreover, the former can provide a richer product line and new research and development products for the latter, enabling mutual growth in the global market and enhancing the international market share of their products, per the announcement.

As Tianyouwei considers the high-end clients of Krämer as key customer resources, this transaction will help enhance the buyer’s sales channel layout and strengthen its industry position in Europe.

Tianyouwei [SHA: 603202] closed up 0.9 percent at CNY93.09 (USD13.18) in Shanghai today, while the benchmark Shanghai Composite Index closed down 0.23 percent.

Editor: Futura Costaglione