(Yicai Global) March 10 -- Shares in DBG Technology surged by as much as 19.2 percent today after the Chinese electronics manufacturing services provider said it will take over TTM Technologies Shanghai, a manufacturer of the backplates used in communication base stations, for USD11.8 million in order to expand its business scope and better meet clients' needs.

DBG's share price [SHE:300735] closed the day up 10.1 percent at CNY11.33 (USD1.63). Earlier in the day it hit CNY12.27, a six-month high.

DBG will purchase a 100 percent stake in TTM Technologies Shanghai from Nasdaq-listed TTM Technologies, one of the world's top five printed-circuit-board makers, the southern Guangdong province-based company said today, citing the deal penned on March 8. The transaction is set to be closed by the end of this month, it added.

TTM Technologies Shanghai, which counts Huawei Technologies, FiberHome Telecommunication Technologies and Finland’s Nokia, among its clients, mainly makes the backplates and intermediate plates used in communication base stations. It also assembles e-machinery and provides system integration services.

The acquisition will help DBG extend its business into the communication equipment and industrial control fields as well as harness TTM Technologies Shanghai’s premium clients to drive growth of DBG’s existing business, it added.

The backplate maker had total assets of CNY241 million (USD34.6 million) and net assets of CNY150 million as of the end of last year, according to unaudited data. The firm logged net profit of CNY76.1 million (USD10.9 million) in 2022 on revenue of CNY301 million.

DBG provides customized e-products manufacturing services to clients, according to its 2021 annual report. Its services include raw material procurement, the import of new products, printed circuit board assembly and finished products assembly.

Editor: Kim Taylor