A Chinese investment group led by Hua Capital Management, a private equity company based in Beijing, has acquired US-based chip manufacturer Omnivision Technologies after paying USD1.9 billion, the American technology firm has confirmed.

OmniVision chairman and CEO Shaw Hong has confirmed the acquisition and said the deal will allow its team of designers to develop more innovative products and solutions for its range of customers.

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The US-based chipmaker, which supplies CMOS sensors to Apple Inc, generates most of its revenue from China and its chairman and CEO will continue to keep his position even after the completion of the acquisition.

The Hua Capital-headed consortium also includes CITIC Capital Holdings Ltd and Hong Kong's GoldStone Investment Co. CITIC Capital is a China-based asset management company while GoldStone is the direct investment arm of CITIC.

Hua Capital Management managing director Yue Liu said the acquisition will help accelerate OmniVision's presence both in China and around the world.

Yue said Hua Capital Management's industry knowledge as well as operational experience and expertise can very well help OmniVision's overall goal of expanding its foothold in the Chinese market and other markets globally.

Headquartered in in Santa Clara, California, OmniVision Technologies has offices around the US, Europe and Asia, and a design and testing center in the Chinese city of Shanghai.

In recent years, Chinese technology companies and investments firms have embarked on acquisition of US-listed chip manufactures as part of the Chinese manufacturers' efforts to access intellectual property in order to further develop their capabilities in producing smartphones and cellular networks.

State-owned firms recently bought US chip manufacturers, including RDA Microelectronics Inc, Spreadtrum Communications Inc and Montage Technology Group.

According to one analyst, it makes sense for Chinese investors to purchase Omnivision and add it to their portfolio and then sell the company at higher price in the future. The entire manufacturing industry and component supply chain is also shifting to East from West, the analyst said.

Investment in technology is one of the top areas being considered by Chinese investors, next to real estate and energy. Chinese investment firms are set to spend billions of dollars to acquire various companies of interest around the world this year, a recent study showed.

TagsOmnivision, Hua Capital