In the current sluggish environment of the primary market, despite the long-held belief that mergers and acquisitions are not robust enough, it has become an eagerly explored path for private equity funds (GPs) as returns are gradually emphasized. Taking CIMS as an example, this leading company of machine vision inspection equipment has achieved mergers and acquisitions through CCUI capital's control. Successfully achieved industrial upgrading with government support.
CIMS was previously the printed circuit board (PCB board) division of Israeli Camtek company and was spun off in 2017. Machine vision inspection is an important demand for China's industrial development in the past five years. According to Yole's research, in 2019, the application of AOI inspection equipment in the global market is mostly in the PCB industry, accounting for 69% of the total market. With strong product strength and global reputation, CIMS has rapidly emerged in the Chinese market.
In 2021, CCUI Capital led the acquisition and holding of CIMS, joining hands with Haining Local Government Fund, CPE and CDH to realize the capitalization path of enterprises through the holding of funds.CCUI Capital cooperates with Government Haining to implement new planned production capacity of CIMS and the listed entity in Haining Zhejiang, and leverages the City Haining's pan-semiconductor industry cluster to jointly promote industrial upgrading.
CCUI Capital was founded in 2017. It cooperates with Local Government and large industrial groups to find suitable targets for mergers and acquisitions, emphasizing industrial holding rather than pure financial investment. Instead of casting a wide net, they focus on selecting a few growth-stage targets, achieving controlling positions through heavy investment, and helping invested companies grow through in-depth post-investment services.
When selecting this model in 2017, CCUI Capital saw the opportunity of Government leading funds, especially in the case of the dwindling of US funds in the primary market. Through cooperation with Local Governments and meeting their needs, CCUI Capital quickly stood out. They attach importance to transparent communication with Government, submitting reports regularly to build trust.
When selecting investment targets, CCUI Capital pays attention to the stable revenue and cash flow of the enterprise, requiring at least three years of profit records. At the same time, they focus on the management team, hoping that the invested enterprises have professional organizational structure and development path. In the field of hard technology, they prefer to invest in mature enterprises that have in-depth understanding and recognition in the Chinese market.
In general, CCUI Capital has successfully captured the opportunities of the era of stock by cooperating with local governments and investing in industrial holding as the main model. It has realized high-certainty M&A practice. This focus on a stable path has found a new development direction for private equity funds in the current market environment.
