[For Immediate Release]
APOLLO FUTURE MOBILITY GROUP Completes Acquisition of Ideenion, a German Automotive Engineering Services Outsourcing Provider
Enhancing Synergies to Offer Cutting Edge Technological Solutions
(18 February 2021, Hong Kong) Apollo Future Mobility Group Limited (“AFMG”, the “Company”, HKEX stock code: 860.HK) is pleased to announce the completion of the acquisition of the entire issued share capital of Ideenion Automobil AG (“Ideenion”), a German automotive engineering services outsourcing (“ESO”) provider. The acquisition will strengthen the Group’s business strategy in expanding its new energy vehicle (“NEV(s)”) solutions and services and becoming a leading full solutions provider.
Strong Client Base of International Automobile Brands
Ideenion has been engaged in the design, development and prototyping of internal combustion engine vehicles and NEVs for international automobile brands since 2007. With such advanced design and engineering expertise and long-term experience in the automotive industry, the Group believes that the acquisition will help further strengthen the Group’s ability in providing cutting edge technological solutions, and will create substantial synergies with the Group’s other investments in the mobility business.
Surging Demand for Mobility Solutions Outsourcing
With a view to improve efficiency and reduce costs, automobile manufacturers have been gradually reducing investments in internalizing research and development, and outsourcing has become a prevalent practice across the industry. Factors such as high R&D costs, high upfront costs, lack of inhouse advanced technology are expected to support the growth of the demand for outsourced mobility technology solutions in the PRC and around the world. It is expected that the Group can enjoy benefits resulting from such changes in the market as outsourcing offers considerable ongoing cost saving and valuable innovations for automobile original equipment manufacturers (“OEM(s)”).
Mr. Ho King Fung, Eric, Chairman of Apollo Future Mobility Group Limited, comments, “The completion of the acquisition of Ideenion completes the Group’s business transformation and rebranding, leading to significant synergistic and complementary effects with the other investments of the Group, contributing to AFMG’s development goal.”
Mr. Ho continues “Strong demand for NEVs and mobility technology solutions are expected to grow with unprecedented opportunities resulting from favorable national policies and the trend of outsourcing in the mobility industry. The successful acquisition of Ideenion together with the Group’s existing technological capabilities gives us confidence in becoming the pioneer in offering advanced mobility technologies and creating new standards in future mobility.”