Blue Hat Interactive Entertainment Technology has signed an updated letter with the intent of acquiring 51 per cent of mobile games firm Fuzhou Csfctech.

Through the deal, Blue Hat will get a majority share in not only Fuzhou Csfctech, but also its two subsidiaries.

Initially, the Chinese firm signed a letter of intent last year, but the complications that arose due to the coronavirus pushed the deal back.

The transaction will be completed through a combination of cash and ordinary shares in Blue Hat, with the cost of each share being set at least the IPO price of $4.00. However, the terms of the agreement are subject to change, should Fuzhou Csfctech fail to hit net profit targets.

"Significant development"

"We believe that this transaction represents a significant development in our strategy and ability to rollout a wider breath of augmented reality and mobile games to our growing audience in China. Csfctech's business covers more than 100 games available on a number of different platforms, and maintains a strong following of customers based in Asia and Africa," said Blue Hat CEO Xiaodong Chen.

"Through this acquisition, not only can we integrate the product development technology, operation and distribution resources of Csfctech, but also our combined resources may help strengthen the available distribution channels. In addition, we expect to leverage our combined expertise to improve the product structure and enhance the overall revenue scale and marketing capabilities."

Chen concluded: "Following the conclusion of this transaction, Blue Hat's three main business lines will be AR education, AR toys and online games. In the future, we will make full use of all three facets of our technology to improve the market competitiveness across all three lines. Ultimately, we believe this will improve the Company's overall profitability and create long-term market value for shareholders."