Electronics giant Xiaomi has agreed to invest $102.84 million for an additional 27.44% stake in Zimi International, a Chinese firm that develops Internet-of-Things (IoT)-based products, smart hardware and mobile accessories. The investment is part of ongoing efforts by Xiaomi to create an ecosystem of interconnected products and services supplied by itself and smaller tech firms.
Xiaomi will pay $25.78 million in cash and pay the rest through the allotment of 54.4 million shares for the deal, which will increase its total stakes in Zimi to 49.91%, according to a filing to the Hong Kong Stock Exchange on Thursday.
Zimi’s power-related technology can be applied to Xiaomi’s smartphones and other IoT-based products for “higher competitiveness, standardization of power-supply of our products to reach cost saving,” Xiaomi said.
It added that Zimi’s research and development capability, industry resources, and operating experience in power-related products, cameras, speakers and other products will “facilitate and improve the competitiveness of the company’s future ecosystem products.”
In January, Xiaomi founder and CEO Lei Jun said that the company will invest at least 50 billion yuan ($7.2 billion) on 5G, artificial intelligence and IoT over the next five years, which are an essential part of the company’s new strategy.
Contact reporter Ding Yi (email@example.com)