New Energy Systems Buys Shenzhen-Based Solar Energy Systems Manufacturer

New Energy Systems Group announced that it has purchased Kim Fai Solar Energy Technology, a Shenzhen-based manufacturer of solar energy systems for residential and commercial sectors. New Energy Systems acquired Kim Fai for $24 million in stock and seller note.

The acquisition price includes about $11 million of common shares of New Energy Systems, and $13 million of seller note, which is due in one year. New Energy Systems expects the acquisition to bring in about $5 million in net income and $24 million in revenue for the year 2011.

The Chairman of New Energy Systems, Jack Yu commented that the acquisition would make the company more profitable. The company anticipates the revenue of the new company to increase by 30% in 2011. The company also believes that good synergies would be derived with the integration of the new company into the existing operations. Yu noted that they would first focus on expanding the Anytone solar products with the help of solar power sources of Kim Fai.