Capital operation frequently staged LED companies to achieve complementary advantages through mergers and acquisitions

Since the beginning of this year, many LED display industry people can clearly see that the LED display industry is quietly undergoing a profound transformation. The first stage of extensive competition is gradually shifting to the second stage of capital and technology competition. Industry concentration is getting higher and higher, low- and medium-level enterprises are gradually withdrawing from the market, and large enterprises are gradually starting to dominate the market.

Under such a trend, a contrast phenomenon has appeared in front of us: the LED display industry is in a pre-capital carnival, and large enterprises enjoy “unable to extricate themselves” in a feast of capital mergers and acquisitions. The shadow of the "running gate" lingers. In the M&A feast, is the LED display industry really a thriving scene?

Through the attention of this year's "LED mergers and acquisitions" phenomenon, the outside world will often produce an "illusion": that is, the current LED industry situation is very good, thriving, prosperous development, triggering the "carnival" of capital, the major led display enterprises Great development opportunities, and even reflect the vitality of the domestic economic industry. In fact, in the global economic recovery is slow, the domestic macroeconomic climate is cold, the domestic economy is down, and the investment and consumer demand are weak, the LED display industry affected by this is also facing weak market demand. The problem of excess, compared with the past, the overall market situation is relatively deserted, the manufacturers and distributors of the LED display industry face enormous difficulties and pressures.

In addition, as the LED industry is favored as a major strategic emerging industry in China, too many enterprises participate in the competition, making the LED display industry competition chaotic and fierce, and the market profits are constantly diluting, gradually moving towards the era of low profit.

From the current industry phenomenon, the economic downturn, capital carnival is getting more and more crazy, why is this? As we all know, LED products are homogenized and the barriers to entry are low, so it is difficult to achieve rapid expansion through differential development. Therefore, the extension of M&A-based extension will become the development trend of this type of industry. Enterprises with capital, technology and resource advantages will achieve complementary advantages through strong alliances.

It is undecidable that enterprises through capital mergers and acquisitions often have high hopes for the results of mergers and acquisitions, but mergers and acquisitions do not mean 1+1>2. In 2015, led display industry capital mergers and acquisitions prevailed, so that more people in the industry also saw some enterprises. Gradually grow up, but the merger is as perfect as the company's expectations or in a "puffy" state, still need time to test.

We don't negate the merger, but we may be wary of corporate mergers and acquisitions like a balloon-like external expansion. If there is no physical support behind the growing image, a broken shot will lead to even more frustrating defeat after the crazy merger.

Let's review the 2015 M&A case of LED display industry together...

Liard plans to acquire 890 million yuan to purchase Lifeng Culture Jin Lixiang layout culture media

On the evening of January 4th, the restructuring plan was released. Liard plans to acquire 100% shares of Guangzhou Lifeng Culture Technology Co., Ltd. and Beijing Jinlixiang Art Color Technology Co., Ltd. by issuing shares and paying cash. The total transaction amount is about 8.9. 100 million yuan, and raise matching funds.

The announcement shows that Lifeng Culture focuses on the cultural and technological industry and is committed to providing conceptual planning, creative design, cultural performance equipment system integration and overall solution services for new cultural industries such as digital cultural experience and emerging cultural tourism, and has long been engaged in high-end cultural performances. R&D, production and sales of equipment. Jin Lixiang is a comprehensive service provider of creative, design, visual effects equipment and technology for cultural performances. The main business is to provide LED-based stage vision for cultural performances, TV variety shows, exhibitions and other various stage activities. Effect engineering services.

Liard said that the transaction will help strengthen the company's market expansion capabilities and comprehensive competitiveness, improve its ability to resist risks and sustainable management, help enrich the company's business structure, extend the industrial chain, and enable the company to lay out the market ahead of time. The promising cultural media field is in line with the company's established development strategy and shareholders' interests.

Ai Bisen acquires Westin to enter the creative display

2015-01-09 Ai Biesen intends to acquire a part of the equity of Shenzhen Westtek Optoelectronics Technology Co., Ltd. with its own funds. The company acquired a 60% stake in Westtech for a consideration of RMB 24 million. Upon completion of the acquisition, the company will hold a 60% stake in Wester, and Zhong Zaibo will hold a 40% stake in Westerick, which will become a holding subsidiary of the company.

Weisstek is mainly engaged in the research and development, production, sales and service of stage rental and creative LED display. The company's products are characterized by light, thin, transparent and quick disassembly. The design concept of the product is extremely original and leading in the industry. Status, Westin products have been successfully used in major projects such as China Central Television, the 2008 Beijing Olympic Games, the US Pavilion at the 2010 Shanghai World Expo, and the Russian Pavilion. Weisstek products are mainly exported to dozens of countries and regions.

Abbison said that after the company's acquisition of Westerick, it can quickly improve the product lines and solutions in the field of stage leasing and creative display, and complement the company's existing products. The combination of the two will help promote the company's existing products. Sales, better meet customer needs.

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