(Yicai) May 28 -- Keboda Technology, a Chinese manufacturer of automotive electronics, said it will buy Integrated Micro-Electronics Czech Republic for EUR9.4 million (USD10.7 million) so as to quickly acquire a European factory and thereby ease the impact of international trade uncertainty.

Keboda will buy all of IMI Czech Republic from its Philippines parent company IMI, as part of the latter's global business restructuring, the Shanghai-based firm announced yesterday.

IMI Czech Republic produces vehicle and industrial electronics, with the automotive segment accounting for about 85 percent of its revenue. The firm’s clients include well-known auto parts suppliers, and its products are used by big carmakers such as Renault Group, Audi, BMW Group, Mercedes-Benz Group, and Volkswagen Group.

Under the deal, IMI will divest all assets and liabilities of IMI Czech Republic that are unrelated to the auto electronics business, and Keboda's German subsidiary will take over the properties, production equipment, and the 165 workers of the target company.

The acquisition will enable Keboda to have production facilities near its key overseas clients, which have increasingly called for supply chain relocation, greatly boosting the company's risk resilience and creating operational synergies with the newly acquired assets, the company noted.

Located in Pilsen, West Bohemia, IMI Czech Republic has a more than 10,000-square-meter factory that meets the cleanliness requirements for processing auto electronic products. The firm had a net loss of about CNY37.4 million (USD5.2 million) last year, with shareholders’ equity assessed at about EUR9.6 million (USD10.9 million) as of Dec. 31.

Keboda's main products include control systems for auto lighting and motors, in-vehicle electronics and electrical systems, and energy management systems. Its main European clients include Mercedes-Benz, BMW, Audi, Volkswagen, Porsche, Bentley Motors, and Renault.

Last year, Keboda's overseas sales exceeded CNY1.9 billion (USD260 million), accounting for nearly one-third of annual revenue, according to the company's 2024 financial statement.

Keboda [SHA: 603786] closed down 3.1 percent at CNY53.60 (USD7.45) today, after opening up almost 2 percent. The benchmark Shanghai Composite Index ended little changed.

Editor: Futura Costaglione