Huada Jiutian to buy 6.90% of place-and-route tool developer Xinxingji for 149m yuan
In short
Huada Jiutian (华大九天, 301269.SZ) announced on October 8 that it is investing 149 million yuan to acquire 9,269,142 shares of Xinxingji (芯行纪) from Shengshi Zhida (盛世智达). After the deal it will hold 6.90% of Xinxingji, which will become an equity-participation company of Huada Jiutian. The company said the aim is to fill in key core place-and-route EDA tools and speed up building a full-flow EDA tool system for digital circuit design.
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Huada Jiutian (华大九天, 301269.SZ) said in an announcement on October 8 that it is investing 149 million yuan to acquire 9,269,142 shares of Xinxingji (芯行纪) held by Shengshi Zhida (盛世智达). After the investment, Huada Jiutian will hold 6.90% of Xinxingji, which will become an equity-participation company of Huada Jiutian, CLS and 36Kr reported. Yicai reported that the company expects to hold 6.9% once the deal is completed. [ 1 , 2 , 3 ]
According to the announcement, the investment is intended to quickly fill in key core place-and-route EDA tools and to accelerate the building of a full-flow EDA tool system for digital circuit design. [ 1 , 2 , 3 ]
Yicai reported that the announcement describes Xinxingji Technology Co., Ltd. (芯行纪科技股份有限公司) as a company whose main business is developing and selling place-and-route tools. The announcement said its tools are functionally complete, have been verified and recognised by well-known domestic IC design companies, and that Xinxingji cooperates deeply with major domestic foundries. Yicai identified Shengshi Zhida as a Xinxingji shareholder. The documents do not say when the share transfer will be completed. [ 2 ]
Why it matters
According to the company's announcement, the stake is meant to fill a gap in place-and-route tools within its EDA line-up for digital circuit design. The deal was covered by business and tech outlets as a company announcement; the documents give no market reaction or further consequences.
Key facts
- Huada Jiutian is investing 149 million yuan in the share purchase. [ 1 , 2 , 3 ]
- It is acquiring 9,269,142 Xinxingji shares held by Shengshi Zhida. [ 1 , 2 , 3 ]
- After the deal Huada Jiutian will hold 6.90% of Xinxingji, which becomes an equity-participation company of Huada Jiutian. [ 1 , 2 , 3 ]
- The company said the investment aims to fill in key core place-and-route EDA tools and accelerate a full-flow EDA tool system for digital circuit design. [ 1 , 2 , 3 ]
- Xinxingji's full name is Xinxingji Technology Co., Ltd. (芯行纪科技股份有限公司), and its main business is developing and selling place-and-route tools, according to the announcement as reported by Yicai. [ 2 ]
- The announcement said Xinxingji's tools have been verified and recognised by well-known domestic IC design companies and that it cooperates deeply with major domestic foundries, Yicai reported. [ 2 ]
Confirmed by several sources
- Huada Jiutian is investing 149 million yuan to acquire 9,269,142 Xinxingji shares from Shengshi Zhida. [ 1 , 2 , 3 ]
- The purchase will give Huada Jiutian a 6.90% stake in Xinxingji, making it an equity-participation company. [ 1 , 2 , 3 ]
- The stated purpose is to fill in key core place-and-route EDA tools and accelerate a full-flow EDA tool system for digital circuit design. [ 1 , 2 , 3 ]
Still unclear
- Description of Xinxingji's business, tool verification by domestic IC design companies and cooperation with major domestic foundries. Only Yicai reports these points, and they are the company's own claims from its announcement.
- When the share transfer will be completed. The documents give no completion date, and Yicai describes the 6.9% holding as expected after completion.