Huami Corp. (NYSE: HMI) announced Tuesday that it has entered into an agreement with Jiangsu Yitong Hi-Tech Co., Ltd.(JYHT).
According to the announcement, Huami will acquire 29.99% of the outstanding shares of JYHT in 959.68 million yuan ($147.08 million). The two parties are expecting to expand the healthcare ecosystem for the Chinese market in the long term, the company added.
Wang Huang, chairman, CEO, and founder of Huami, stated, "This new partnership with Jiangsu Yitong is an investment in the future of our business in China. Our equity stake in Yitong will allow us to drive growth and shareholder value for investors in both companies."
The transaction is expected to close before the first half of 2021.
In November, the cloud-based healthcare service provider announced that in the three months through September its revenue reached $329.2 million, up 20% year-over-year. Net income was $12.3 million, or 31 cents per American depositary share, compared with $30.87 million in the same period in 2019.
The company reported cash and cash equivalents of $376.4 million. Huami said the negative impact of Covid-19 receded in this quarter on retail sales and the worldwide economy generally.
Shares of Huami rose 4.55% Monday, closing at $13.33.