On the evening of March 24, Xiaomi Group stated that the company intends to acquire 50,09% of the shares of ZMI for a total cost of 205 million dollars.
Xiaomi will acquire the ZMI brand for 205 million dollars
Previously, Xiaomi Group already held 49,91% stake in ZMI. So after the close of the deal, ZMI will become a wholly owned subsidiary of Xiaomi Group.
From Xiaomi's announcement it is quite clear that the directors of Xiaomi believe that the technology and research and development capabilities of ZMI in the field of power and multiple IoT fields can improve Xiaomi's technical competitiveness in the field of smart products, allowing the brand to optimize production and therefore save on your R&D.
In addition, ZMI also has excellent industry resources and operational experience, which can simultaneously coordinate and improve the competitiveness of the company's future ecological chain products. In other words, it costs Xiaomi much less to acquire the remaining half of ZMI than to create research and development teams within the company.
Recall that according to the official website of ZMI, Jiangsu Zimi Electronic Technology Co., Ltd. (full name) was founded in 2012 and joined the Xiaomi industrial ecological chain in 2013. It is responsible for research and development of Xiaomi branded power banks and related accessories. Zhang Feng, the founder of ZMI, later also became a partner and vice president of Xiaomi Group.
From 2014 to 2018, the cumulative sales of Xiaomi's power banks exceeded 100 million units. The ZMI brand has always been committed to providing high-end smartphone accessories, including chargers, wireless chargers, data cables, smart appliances, and many other products.
At the moment it is not clear whether ZMI's products will disappear from the market in the future, replaced entirely by Xiaomi-branded ones, or if the brand will continue to produce devices under its own brand and at the same time collaborate with Xiaomi to launch new technologically advanced products.
