Ninestar Moving Forward with Pantum Acquisition

Ninestar Corporation of Zhuhai, China, reported that on August 25, 2021, after review by the Chinese Securities Regulatory Commission, Ninestar was given permission to acquire 100 percent of Chinese printer-maker  Zhuhai Pantum Electronics.

With the approval, Ninestar will purchase 100 percent of Pantum by issuing shares and paying cash, thereby incorporating Pantum as a wholly owned subsidiary. The transaction price was RMB 6.6 billion  (U.S. $925.5 million).

However, Ninestar reported that more recently the Chinese Securities Regulatory Commission questioned whether the Pantum acquisition would compete with Ninestar’s Lexmark International, which APEX Microelectronics (which Ninestar is a part of) and other investors acquired in 2016.

Ninestar stated that the Pantum acquisition would not conflict with its Lexmark International group, because, overall, the two companies’ products compete in different markets. That is, Pantum printers and MFPs are designed for more cost-conscious customers, while Lexmark printers and MFPs are more sophisticated that tend to have more advanced capabilities. Lexmark also provides print-management software, content and workflow software, etc., while Pantum does not. In sum, stated Ninestar, the two companies “have different target channels and customers.”

More Resources

• August 2021: Pantum Launches BP5100 Elite Series
• August 2021: Ninestar’s Pantum Plans U.S., Europe Expansion
• January 2021: Pantum Expands Unique Printer Line in India