NewMarket Technology (NMKT.OB) and Defense Technology Systems (DFTS.OB) and Gaozhi Communications of Shanghai announced that the two former companies will close on the previously announced acquisition of Gaozhi by NewMarket during the company's second Investor Trade Mission to China which departs later in January.
Gaozhi Communications is currently operated by Gaozhi Science and Technology Development Limited. NewMarket will acquire a majority interest in Gaozhi Communications for cash and Gaozhi Science and Technology will remain as the second largest shareholder.
Gaozhi Communications has annual revenue of $3 million with significant business relationships in China that will contribute towards meeting NewMarket's China 2005 revenue forecast of $10 million.
The acquisition of Gaozhi Communications represents the first acquisition in China and is an integral step in NewMarket's initiatives to becoming a part of the rapid economic growth in China through a merger and acquisitions strategy.