International Business Settlement Holdings (IBS) has agreed to buy AI chip designer QuantumCompute Solutions for HK$563 million ($72.4 million), marking an expansion into semiconductor design and edge computing.
The Hong Kong-listed company signed an agreement with Brainwave Innovations, the seller, on October 30, according to a stock exchange filing.
The deal is subject to several conditions, including a restructuring of QuantumCompute’s ownership structure. Once completed, QuantumCompute will become a wholly owned subsidiary of IBS.
QuantumCompute indirectly controls Shanghai Tianjing Fulian, a Chinese company that designs AI system-on-chip products and integrated solutions for low-power AI processing and edge-computing applications.
Following an internal restructuring, QuantumCompute is expected to hold an indirect 85.94% stake in Shanghai Tianjing Fulian. Foxconn Industrial Internet owns a separate 5.56% interest in the company, according to the filing.
IBS said Shanghai Tianjing Fulian is an authorised independent chip design house for MediaTek.
It is the main operating business within the target group, which also includes several holding companies established in recent months as part of the ownership structure.
The acquisition will give IBS a foothold in AI chip design as it seeks to broaden its existing fintech-related services and computing-power infrastructure businesses. The company said the move would also reduce its exposure to fluctuations in cryptocurrency markets.
IBS plans to keep QuantumCompute’s main operations running separately after the acquisition and said it has no current plans to close or significantly scale back its existing businesses.
The company expects the chip business to complement its computing infrastructure and fintech operations, although it did not disclose revenue, profit or other financial figures for the target that would allow investors to assess its current contribution.
IBS has appointed semiconductor executive Tang Tianshen as chief strategic adviser to its fintech-related businesses and adviser to the target following completion.
Tang previously held positions at Intel, Shanghai Hua Hong and Semiconductor Manufacturing International Corporation, the company said.
The transaction is classified as a discloseable transaction under Hong Kong listing rules. IBS also plans to use part of the proceeds from an earlier share subscription to finance the acquisition and related development.
Completion will depend on the fulfilment of the agreement’s conditions, including the restructuring of the target group. Until then, QuantumCompute and its underlying chip business will remain outside IBS’s consolidated operations.
