(Yicai Global) June 22 -- TZTEK Technology will spend EUR18.19 million (USD20.4 million) to buy German semiconductor wafer testing equipment supplier MueTec Automated Microscopy and Messtechnik and has pledged to repay EUR2 million of the target’s debt.

The takeover will ease the Chinese smart industrial equipment supplier’s rapid entry into the semiconductor equipment business, the company said in a statement yesterday.

The Munich-based target, which earned EUR622,000 (USD696,525.50) in net profits last year based on operating revenue of EUR6.07 million, provides high-precision optical detection and measurement equipment for processing of semiconductor wafers and has served manufacturing customers in the sector for years, per the statement, which omitted further details as to the German company's products and main clients.

Suzhou-based TZTEK’s shares [SHA:688003] were up 11.99 percent at CNY32.39 (USD4.59) in mid-afternoon after falling off from a more than 17 percent jump in the morning on the news. The Shanghai bourse's Nasdaq-style Star Market lets stocks rise or fall up to 20 percent per day, as opposed to the 10 percent intraday usual on Chinese boards.

The asset transaction is subject to regulators’ approval in both China and Germany, the statement added.

Editor: Ben Armour