Hiconics is a large manufacturer of industrial frequency converters (VFD). Midea will use Hiconics' high voltage, low voltage frequency converters and servo drives to automate its production lines.
The Hiconics acquisition will play an important role in Midea Group's expansion into the manufacturing technology market. The previous significant steps in this area were the acquisitions of the German company Kuka and the Israeli company Servotronix.
Hiconics is expected to have tremendous growth potential after joining the Midea group of companies. At the same time, Hiconics will help Midea achieve its goal of bringing artificial intelligence and the Internet of Things to production.
The deal will amount to USD 105 million. She will have to be checked by the antimonopoly authorities and confirmed by the Shenzhen Stock Exchange. Upon completion of the transaction, Midea Group will become the indirect controlling shareholder of Hiconics.