Xiaomi acquires Deepmotion, an autonomous driving technology company for USD 77.37 million

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Back in July 2021, there were rumours regarding Xiaomi acquiring some startup companies. Finally, Xiaomi has announced that it will acquire the self-driving technology startup Deepmotion for USD 77.37 million. A statement released by Xiaomi mentions that they have entered into a share purchase agreement with Deepmotion Tech Limited (an autonomous driving technology company, from now on referred to as Deepmotion Technology) and related parties. As per the agreement, Xiaomi conditionally agreed to purchase, and the equity shareholders and preference shareholders conditionally approved to sell 125 million equity shares and 508.547 million preferred shares.


XIaomi

These makeup to 71.16% and 28.84% of Deepmotion’s issued share capital, respectively. However, Xiaomi will pay approximately USD 77.37 million for the overall acquisition. Previous reports suggest that DeepMotion may integrate a team of more than 20 people into Xiaomi. It would help Xiaomi initially to increase its technological accumulation in the field of autonomous driving. And also complement the leaders in various fields and lay the foundation for Xiaomi’s car manufacturing. Reports suggest that the acquisition is part of Xiaomi’s plan of investing USD 10 billion in the EV segment. Xiaomi had made an electric scooter named Ninebot C30.

Recently, Xiaomi became the world’s second-largest smartphone maker by sales by overtaking top-tier brands like Samsung, Apple, and other players. Further,
Xiaomi today also announced its financial report for the second quarter of 2021, ending on June 30, 2021. The financial report shows Xiaomi’s total revenue in the Q2 of 2021 was 87.79 billion yuan, while they expected it to be only 84.089 billion yuan. There is an increase of 64% in revenue compared with the revenue of the same period last year, which was at 53.538 billion yuan. The net profit is 8.27 billion yuan, while the market estimate was just 5.99 billion yuan. And the adjusted net profit was 6.32 billion yuan and the net profit for the first half of the year stood at 16.06 billion yuan. Xiaomi Group’s both total revenue and adjusted net profit hit a record high in this single quarter.