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Hollysys Automation (HOLI) to Acquire Concord Corp. and File for Dual Listing on Hong Kong Exchange

Hollysys Automation Technologies Ltd., a leading provider of automation and control technologies and applications in China, has signed a stock purchase agreement (SPA) to acquire 100 percent ownership of Concord Corporation Pte Ltd. and its group of companies (CCPL) for cash and stock equivalent of $43.2 million.

CCPL is a Singapore-headquartered electrification related service provider for the rail and industrial industrials in South-East Asia and the Middle East.

“We are honored to be able to join and team up with Hollysys, a well-established proprietary technology and product provider in rail and industrial industries in China. We are seeing great opportunities lying ahead of us, given the fast growth in rail, oil and gas, and power industries in our addressable market in South-East Asia and the Middle East,” Chim Swee Yong, group executive chairman of CCPL stated in the press release. “With more than 20 years strong track record, we believe the combination of our existing customer base and complete electrification solution capabilities and Hollysys’ proprietary technology and products would be of great benefit to capturing the growth opportunities, both in the current addressable geographical regions and other international markets at large.”

Dr. Changli Wang, CEO and chairman of Hollysys, said the company will “leverage its strong proprietary technology and its capabilities accumulated from its leading positions in China’s rail and industrial segments to enter and penetrate into the international market, through both organic growth and accretive acquisitions to maximize our shareholder value.”

The deal is expected to close July 1, 2011, at which time CCPL revenue and income would be fully consolidated and reported under Hollysys.

The acquisition marks the company’s first significant acquisition since it began publicly trading on the Nasdaq. Hollysys also said it will seek to dual list itself on the Hong Kong Stock Exchange while maintaining NASDAQ listing as its primary listing board to generate a diversified investor base, comparable peers, and stronger analyst coverage interests.

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