(Yicai Global) Nov. 17 -- China's Hisense Home Appliances Group plans to invest nearly USD1 billion to acquire German conglomerate Siemens’ Intelligent Traffic Systems business, a source close to the Chinese home appliance maker told Yicai Global.

The acquisition could help Hisense accelerate its smart traffic business, following its purchases of Japan’s Toshiba Visual Solutions, automotive air conditioner maker Sanden Holdings, and Slovenian kitchen appliance company Gorenje, the insider said to Yicai Global.

The Munich-headquartered company's intelligent transport arm produces hardware and software for traffic monitoring, including cameras, radars, and traffic lights. Its annual revenue exceeds EUR600 million (USD678 million).

Siemens was earlier reported to be planning to spin off the traffic arm in the fiscal year of 2021 and sell it in the summer of 2021. The unit's business involves more than 40 countries and regions.

Hisense is actively pursuing intelligent transport projects worldwide and has won some of the bids, Zhang Sihai, president of Hisense TransTech, said in a recent interview with Chinese media.

Established in 1969, Foshan-based Hisense manufactures white goods, as well as television sets. It owns brands including Kelon, Ronshen, Gorenje, and Toshiba, with sales in more than 160 countries. But the firm has also been active in the smart transport sector since 1998. Its smart transport solutions have been applied in nearly 170 Chinese cities, according to data from 7its.Com.

The Chinese company is eyeing more overseas operations. Offshore revenue should make up more than half of its total in three years, Jia Shaoqian, president of Hisense, said on Oct. 20. In the third quarter, the home appliance maker's revenue was CNY125.2 billion (USD19.6 billion), and overseas sales accounted for 42 percent of that.

Editor: Emmi Laine, Xiao Yi