DCP Capital, a China-based private equity firm, has sold MFS Technology, a Singapore-based manufacturer of flexible printed circuit boards (FPCBs), to Victory Giant Technology Huizhou Co. Ltd. for up to $460 million.
The deal, which was announced on Wednesday, is expected to close in the third quarter of 2023. DCP Capital acquired MFS Technology in 2018 from Navis Capital Partners and Novo Tellus Capital Partners for an undisclosed amount.
MFS Technology is a leading manufacturer of FPCBs for the automotive, industrial, medical, and data storage industries.
Photo by Laura Ockel on Unsplash
The company has manufacturing facilities in Singapore, Malaysia, and China, and it employs over 3,000 people.
Victory Giant Technology is a Chinese electronics parts manufacturer that is backed by the state-owned China Electronics Technology Group Corporation (CETC).
The company is a major supplier of FPCBs to the Chinese market.
The sale of MFS Technology to Victory Giant is a sign of the growing importance of China in the global FPCB market.
China is now the world’s largest market for FPCBs, and it is expected to continue to grow in the coming years.
The deal is also a sign of the increasing interest of Chinese companies in acquiring foreign technology companies.
Victory Giant is the latest Chinese company to acquire a foreign technology company in the past year.
The sale of MFS Technology is a good outcome for both DCP Capital and MFS Technology. DCP Capital has been able to exit its investment in MFS Technology at a profit, and MFS Technology has found a new owner that is committed to growing the company’s business.
It will be interesting to see how Victory Giant integrates MFS Technology into its business and how it plans to grow the company’s business in the years to come.
The acquisition is a sign of Victory Giant’s ambition in the FPCB market, and it will be closely watched by other players in the market.
Key Takeaways
- DCP Capital has sold MFS Technology to Victory Giant Technology Huizhou Co. Ltd. for up to $460 million.
- The deal is expected to close in the third quarter of 2023.
- MFS Technology is a leading manufacturer of FPCBs for the automotive, industrial, medical, and data storage industries.
- Victory Giant Technology is a Chinese electronics parts manufacturer that is backed by the state-owned China Electronics Technology Group Corporation (CETC).
- The sale of MFS Technology to Victory Giant is a sign of the growing importance of China in the global FPCB market.
- The deal is also a sign of the increasing interest of Chinese companies in acquiring foreign technology companies.
What does this mean for the FPCB market?
The sale of MFS Technology to Victory Giant is a sign of the growing importance of China in the global FPCB market. China is now the world’s largest market for FPCBs, and it is expected to continue to grow in the coming years.
The deal is also a sign of the increasing interest of Chinese companies in acquiring foreign technology companies.
Victory Giant is the latest Chinese company to acquire a foreign technology company in the past year.
The sale of MFS Technology is likely to have a number of implications for the FPCB market. First, it is likely to lead to increased competition in the Chinese market.
Second, it is likely to lead to increased innovation in the FPCB market as Victory Giant seeks to integrate MFS Technology’s technology into its own business.
Third, it is likely to lead to the expansion of the FPCB market into new markets as Victory Giant seeks to grow its business.
Overall, the sale of MFS Technology to Victory Giant is a positive development for the FPCB market. It is a sign of the growing importance of China in the global FPCB market, and it is likely to lead to increased competition, innovation, and growth in the market.
