SHENZHEN, China , Oct. 16 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. (OTC Bulletin Board: CSCT), '' China Security'', a leading provider of digital surveillance technology in China , today announced its intention to acquire two Chinese security and surveillance companies.
Letters of intent have recently been signed with Stonesonic Digital
Technique Co., Ltd. (''Stonesonic'') and Shenzhen Jin Lin Technology Co., Ltd
('' Jin Lin '') for 100% ownership of each business. The total amount of
consideration payable for the two acquisitions is approximately RMB 330
million (approximately USD$43.3 million, based on a conversion price of USD:
RMB 1.00:7.62), with consideration to be paid in cash and restricted common
stock. The number of China Security's shares to be included in the equity
portion of the purchase price for each acquisition will be subject to the
achievement of certain net income performance targets over a two year period.
China Security expects to finance the cash portion of the purchase price with
net proceeds from its
Stonesonic, founded in 1993 and based in Chaozhou, Guangdong province, is a leading monitoring equipment hardware manufacturer. This business will compliment China Security's existing product suite for Safe City projects. The company has received its High-tech Enterprise Certificate as well as 3111 product recognition.
Jin Lin , based in Shenzhen, provides professional intelligent security monitoring systems that specializes in intelligent transportation system (ITS) product development. Its product applications include electronic police systems and traffic junction controls (software and hardware manufacturer). This business also compliments China Security's existing suite for Safe City projects. Jin Lin was recently awarded the Shenzhen High-Tech Enterprise certificate.
Mr. Guo Shen Tu , Chief Executive Officer of China Security commented, ''The acquisitions announced today represent leading hardware and software manufacturers in China's security industry. We believe these businesses will further strengthen our service offering and allow us to expand our geographic coverage into new regions of the country. We welcome these companies into our portfolio and view each company as valued partners that will continue to reinforce our brand awareness and further bolster our leadership position in the security and surveillance industry.''
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China , China Security manufactures, distributes, installs and maintains security and surveillance systems throughout China. China Security has manufacturing facilities in China and a R&D facility which maintains an exclusive collaboration agreement with Beijing University. China Security has built a diversified customer base through its extensive sales and service network throughout China . To learn more about the Company visit http://www.csst.com .
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as ''will'' ''believes'', ''expects'' or similar expressions. Statements in this press release about our ability to acquire Stonesonic and Jin Lin , for example, are forward-looking statements. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .