TSX Venture listed Cantronic Systems Inc said it entered into a binding agreement to buy a 58.6 percent stake in Beijing Advanced VideoInfo Technology Co Ltd. (AVINFO) in Beijing, China, for approximately CDN$1.7 million in cash.
The stake will be transferred to the group’s Shanghai based subsidiary Cantronic Security Systems (China) Co Ltd, it said in a statement.
Established in 2002, AVINFO is a profitable digital video platform provider for medium to large-scale networked video surveillance applications, with revenues of CDN$4.9 million in 2007.
Cantronic will also issue up to approximately CDN$1.2 million worth of stock to AVINFO management and management consultants under an earn-out performance based arrangement.
AVINFO's patented proprietary software, products and services compliment Cantronic's patented infrared camera technology and business model. AVINFO's technology platform is a mission critical component of China's ‘Safe City’ projects, which endorses video surveillance across various towns and cities to monitor and control crime, violence and terrorism on a full-time basis, Cantronic added.