NEW YORK and SHANGHAI, March 13,
2017 /PRNewswire/ -- Borqs International Holding Corp
("Borqs"), which on December 27, 2016
entered into a definitive merger agreement with Pacific Special
Acquisition Corp. ("Pacific", NASDAQ: PAACU, PAAC, PAACR and
PAACW), today announced that, as part of a preferred stock
financing, it has closed an investment in Borqs led by Qualcomm
Ventures, the investment arm of Qualcomm Incorporated. Borqs is a
leading global provider of smart connected devices and cloud
service solutions for the Internet of Things ("IoT") industry.
Borqs is a leading IoT products and solutions provider, with
major R&D centers in Bangalore
and Beijing. Borqs was founded in
2007 by veterans in the communication technologies industry from
Canada, China, India
and the United States. Borqs'
investors include Intel Capital, Norwest Venture Partners, SK
Telecom China Fund, Keytone Ventures and GSR Ventures. After the
Qualcomm Ventures investment, Borqs has a shareholder base that
includes two of the largest chip manufacturers in the world.
"Qualcomm Ventures is already an active investor in several
Indian startups. Our investments in India help fuel innovation and foster
promising startups, such as Borqs, that are contributing to the
mobile and Internet of Things ecosystem. This investment will fund
additional engineering capabilities to invigorate advances in the
development of autonomous products and a connected society.
Qualcomm hopes to find future opportunities to work with Borqs to
share leading-edge and innovative 4G phone design expertise with
Indian and global OEMs in support of Prime Minister Narendra Modi's vision of Design in India,"
said Karthee Madasamy, Vice President and Managing Director,
Qualcomm Ventures India.
Pat Chan, founder, Chairman and
CEO of Borqs, said: "We are honored to have a strategic investment
from Qualcomm Ventures. The India
market is growing rapidly and represents a sizable revenue
opportunity for Borqs' business. We are committed to working on
developing new technologies for the global market." Hareesh Ramanna, General Manager of Connected
Solutions and Managing Director of Borqs India, further commented:
"Borqs has a strong R&D team in India and we have been working closely with
Qualcomm in the past several years to develop products being used
worldwide. Given our focus on innovation, Borqs is committed to
supporting the Indian Government's Made-In-India initiative and
Qualcomm's Designed-In-India initiative."
Yaqi Feng, Chief Operating
Officer of Pacific, remarked, "We are excited by this development
at Borqs, and we expect that, as a leading IoT products and
solutions provider, Borqs' business will grow quickly in
India and China, as well as in the U.S. markets. With
investors such as Qualcomm Ventures and Intel Capital, we believe
Borqs is well-positioned to achieve rapid growth and provide its
investors with strong returns."
Upon the closing under the merger agreement, Borqs will become
the operating entity of the combined Pacific-Borqs company. It is
anticipated that the shareholders of Borqs will collectively own
approximately 78% of the combined company's outstanding ordinary
shares, and Pacific's existing shareholders will retain an
ownership interest of approximately 22%. It is expected that after
the closing, the combined company will change its name to "Borqs
Technologies, Inc."
About Pacific
Pacific is a blank check company, also commonly referred to as a
Special Purpose Acquisition Company, or SPAC, formed for the
purpose of acquiring, engaging in a share exchange, share
reconstruction and amalgamation, purchasing all or substantially
all of the assets of, entering into contractual arrangements, or
engaging in any other similar business combination with one or more
businesses or entities. Pacific's efforts to identify a target
business have not been limited to a particular industry or
geographic region, although it intends to focus efforts on seeking
a business combination with a company or companies that have their
primary operations located in Asia, with an emphasis on China. Pacific is sponsored by Zhengqi
International Holding Limited, a subsidiary of Pacific Securities
Co. Ltd., a publicly traded company in China (Ticker 601099.SS). LH Group
Holdings Inc., the largest shareholder of Pacific Securities Co.
Ltd., invests in financial services, clean energy as well as golf
course and resort businesses globally and currently has billions of
U.S. dollars in assets.
About Borqs
Borqs is recognized as a global leader in smart connected
devices and IoT solutions. Deloitte named Borqs as one of the
fastest growing technology companies in China & Asia
Pacific in 2011, 2012 and 2013. In 2013, 2014 and 2015,
Borqs was named Company of the Year for Innovation & Leadership
in Mobile Technology for Asia
Pacific from the International Alternative Investment
Review. Recently Borqs received the "50 Most Promising IoT Solution
Providers 2016" recognition from CIO Review magazine.
Borqs has a proven track record in design, development and
commercial shipments of various Android devices and is a Google GMS
licensed partner. Qualcomm Technologies, Inc. has chosen to work
with Borqs for its Android based platforms. Borqs is one of the
companies that Qualcomm Technologies is working with in the
wearables segment and is pursuing multiple smartwatches and
connected kid watches based on Qualcomm® Snapdragon™ Wear*.
Additionally, Borqs launched the FDD/TDD combined carrier
aggregation high speed 4G Android phone for Reliance Jio in
India.
Borqs' broad customer base and target markets include OEMs such
as Vizio and Fossil, operators like AT&T and Sprint in the U.S.
and Reliance Jio in India, and IoT
solution providers to restaurants and the utility, public safety
and hospitality categories.
Borqs believes that its modular platform architecture and its
ability to tailor Android for various vertical applications and
form factors, together with its flexible BorqsWare platform, are
keys to its success. Borqs has a pipeline of products ranging from
tablets, phones, smartwatches, smart appliances, POS terminals and
digital signage to in-vehicle infotainment (IVI), for various well
known international brands.
Additional Information
The proposed merger between Borqs and Pacific will be submitted
to the shareholders of Pacific for their approval. In connection
with that approval, Pacific filed with the Securities and Exchange
Commission (the "SEC") a preliminary proxy statement on
February 13, 2017 containing
information about the proposed merger and the respective businesses
of Borqs and Pacific. After the SEC completes its review of the
preliminary proxy statement, Pacific intends to file with the SEC a
definitive proxy statement in connection with the proposed merger
and other matters and will mail a definitive proxy statement and
other relevant documents to its shareholders as of the record date
to be established for voting on the proposed merger.
Shareholders of Pacific and other interested persons are advised
to read the preliminary proxy statement filed with the SEC and,
once available, any amendments thereto and the definitive proxy
statement, in connection with Pacific's solicitation of proxies,
because these documents will contain important information. Such
persons can also read Pacific's annual report on Form 10-K for the
fiscal year ended June 30, 2016 for a
description of the security holdings of Pacific's officers and
directors and their respective interests as security holders in the
successful consummation of the proposed merger, and other
information. Pacific's definitive proxy statement will be delivered
to shareholders of Pacific as of a record date to be established
for voting on the proposed merger and other matters as set forth in
the definitive proxy statement. Shareholders will also be able to
obtain a free copy of the proxy statement, as well as other filings
containing information about Pacific, without charge, at the SEC's
website (www.sec.gov) or by calling 1-800-SEC-0330. Copies of the
proxy statement and other filings with the SEC can also be
obtained, without charge, by directing a request to Pacific at 855
Pudong South Road, the World Plaza, 27th Floor, Pudong,
Shanghai, China, 200120.
Participants in the Solicitation
Pacific and its directors and executive officers and other
persons may be deemed to be participants in the solicitation of
proxies from Pacific's shareholders in respect of the proposed
merger. Information regarding Pacific's directors and executive
officers is available in its annual report on Form 10-K for the
fiscal year ended June 30, 2016 and
in Pacific's preliminary proxy statement filed with the SEC on
February 13, 2017. Additional
information regarding the participants in the proxy solicitation
and a description of their direct and indirect interests will be
contained in the definitive proxy statement relating to the
transaction with Borqs when it becomes available and which can be
obtained free of charge from the sources indicated above.
Disclaimer
This press release is not a proxy statement or solicitation of a
proxy, consent or authorization with respect to any securities or
in respect of the proposed business combination and shall not
constitute an offer to sell or a solicitation of an offer to buy
the securities of Pacific or Borqs, nor shall there be any sale of
any such securities in any state or jurisdiction in which such
offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of such
state or jurisdiction.
Forward-Looking Statements
This press release includes "forward-looking statements" that
involve risks and uncertainties that could cause actual results to
differ materially from what is expected. Words such as "expects",
"believes", "anticipates", "intends", "estimates", "seeks", "may",
"might", "plan", "possible", "should" and variations and similar
words and expressions are intended to identify such forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking. Such forward-looking statements
relate to future events or future results, based on currently
available information and reflect both Borqs' and Pacific's
managements' current beliefs. A number of factors could cause
actual events or results to differ materially from the events and
results discussed in the forward-looking statements. Such factors
include, among other things: the possibility that the merger will
not close or that the closing may be delayed because conditions to
the closing may not be satisfied, including shareholder and other
approvals; the performances of Pacific and Borqs; the ability of
the combined company to meet the NASDAQ Capital Market's listing
standards; the reaction of Borqs customers to the merger;
unexpected costs, liabilities or delays in the transaction; the
outcome of any legal proceedings related to the transaction; the
occurrence of any event, change or other circumstances that could
give rise to the termination of the merger agreement; and general
economic conditions. In addition, please refer to the Risk Factors
section of Pacific's Proxy Statement and its Forms 10-K and 10-Q
for additional information identifying important factors that could
cause actual results to differ materially from those anticipated in
the forward-looking statements. Except as expressly required by
applicable securities law, Pacific disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or
otherwise.
* Qualcomm and Snapdragon are trademarks of Qualcomm
Incorporated, registered in the United
States and other countries. Snapdragon Wear is a trademark
of Qualcomm Incorporated.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/pacific-special-acquisition-corps-merger-partner-borqs-international-holding-corp-announces-strategic-investment-from-qualcomm-ventures-300422412.html
SOURCE Pacific Special Acquisition Corp.