China Tech buying Soyin solar assets

Network security company China Technology Development Group (Nasdaq: CTDC) announced its first solar acquisition today after moving into the photovoltaic market.

China Tech said it would buy all of the solar energy assets and business of Shenzhen Soyin Electrical Appliance Industrial.

The company said Soyin, founded in 1998, is a photovoltaic application product provider in China with customers including Atico in the U.S., Test Rite Group in Taiwan, and France's Axone.

Financial terms of the deal were not disclosed, but China Tech said it would contribute $5.8 million in cash to a new joint venture with Soyin that would control the solar assets.

China Tech said it would be the largest shareholder of the venture, Shenzhen Shengguang New Energy Technology, with a 49 percent stake.

"This acquisition of the solar energy business presents a significant opportunity to accelerate the expansion and growth of the company's business portfolio in the solar energy market," said Alan Li, chairman and CEO of China Tech.

"We are committed to growing our business both through organic growth and strategic acquisitions."

The company said all of Soyin's solar energy business will be operated by the joint venture upon completion of the deal. In addition, China Tech said it plans to appoint three of the five board members at the venture.

China Tech made its initial jump into solar earlier this month, announcing a strategic partnership with New York's Terra Solar Global, a manufacturer of thin-film photovoltaic systems and turnkey facilities (see China Technology Development goes solar).

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