Scooter manufacturer Vmoto Limited
(ASX:VMT) has inked a deal to buy a China-based high tech electronics company named Nanjing Haiyong Electronic Technology Co Ltd.
Haiyong is described as an advanced electronic technology company focused on producing controllers which are a key component for electric vehicle driving systems.
Vmoto expects to benefit through access to electronic vehicle technologies and access to the electric three-wheel and four-wheel vehicle markets.
Both companies last year revealed their intention to form a joint venture but Vmoto says it now views an acquisition as a more attractive and beneficial structure.
The acquisition will be wholly funded through equity and expected to be earnings per share accretive from FY15.
Vmoto reported a net profit of $211,000 in the first half of the 2014 calendar year.
