South Korea's SK Telecom has acquired Chinese company E-eye High Tech hoping to cash in on a lucrative market for GPS products and services in China.
Based in Shenzhen, E-eye High Tech carries an extensive range of GPS-related services, logistics and controlling software platforms, and also manufactures GPS handsets.
SK Telecom announced it will acquire a 65% stake in the Chinese company, valued at around $15 million. Under the deal, which was approved by the Chinese government, E-eye High Tech will become a subsidiary of SK Telecom China Holding Company.
SK Telecom will leverage on this acquisition to tap into the rapidly growing GPS market in China. By law, every public and special-purpose vehicle in the country must install a GPS device.
The company is also looking to offer GPS products and services designed for large corporate transportation and logistics customers. It is also targeting to distribute GPS-enabled handsets targeted at individual users.
"We will also continue to seek more diverse business opportunities centered on Internet, media and content, proactively responding to the fast-changing convergence environment," said Suk Hwan Lee, president of SK Telecom China Holding Company.
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