On Thursday, August 26, Chinese tech giant Xiaomi announced the purchase of a full stake in Deepmotion Tech Limited (Deepmotion Technology), which specializes in developing technologies related to unmanned vehicle control systems. Under the terms of the deal, Xiaomi bought back 125 million common and almost 60 thousand preferred shares, which represent 71.16% and 28.84% of the total number of Deepmotion Tech Limited securities, respectively. Simply put, Xiaomi now owns 100% of the shares of Deepmotion.
The acquisition of the developer of autonomous control technologies cost Xiaomi $ 77.37 million. Upon completion of the transaction, Deepmotion Tech Limited will become a wholly owned subsidiary of the Xiaomi Group. As a result, Xiaomi will receive a team of specialists of more than 20 people and all the developments of Deepmotion, which it can further use when creating its own car.
Although Deepmotion Tech Limited is little known in the global market, it had great potential. The fact that two of the four founders of the startup have worked at Microsoft for almost 10 years speaks for itself and had a hand in creating such an iconic product of the software giant as the Hololens augmented reality headset.
By the way, Xiaomi does not hide its interest in the car market. Xiaomi and its founder Lei Jun have invested in a number of companies related to automotive technology over the past few years. The company is clearly betting on electric vehicles and self-driving systems.
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