Dec. 12 (Bloomberg) -- Han’s Laser Technology Co., a Chinese supplier to Apple Inc., bought Israel’s Nextec Technologies to expand in the market for laser measurement devices used in the auto and aircraft industries.
Gao Yunfeng, president of Shenzhen-based Han’s Laser, said the company paid a “few million U.S. dollars” for privately-held Nextec, without elaborating further. The acquisition size was below $10 million, Bob Dodds, founder of DRP Capital, financial advisor to the Chinese company on the deal, said in an e-mailed response.
Chinese companies are expanding abroad amid slower growth at home. Bright Food Group Co., the dairy and consumer-products group backed by the Shanghai government, said in September it’s considering acquiring Israel’s Tnuva Food Industries Ltd.
Han’s Laser’s shares slipped 1.2 percent to close at 12.53 yuan today. The stock has gained 53 percent this year, compared with a 21 percent advance for the Shenzhen Composite Index.
China’s outbound investment jumped 20 percent to $69.5 billion in the first 10 months of the year, Ministry of Commerce data showed last month. Overseas investment may reach $100 billion this year and exceed foreign direct investment in the near future, Commerce Minister Gao Hucheng was cited by the People’s Daily as saying in November.
Nextec would be a “small but highly strategic acquisition” for Han’s Laser, and would help the Chinese firm boost its capabilities in research and development and expand into markets outside of China, Dodd said. Han’s Laser also plans to support the growth of Nextec in Israel, China and other markets, he said.
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