Shanghai Baud Data Communication (BDCOM) acquired by FS.COM
What's the deal? FS.COM Limited (stock code: 3355) has completed its acquisition of 100% of Shanghai Baud Data Communication Co., Ltd. for US$45.4M. The deal makes Baud a wholly-owned subsidiary, and its results now consolidate into FS.COM's financial statements.
What are the terms? The US$45.4M price for full equity was reached through arm's length negotiations. It equates to about US$0.32 per unit of registered capital — up from roughly US$0.21 per unit at the last shareholder exit in July 2023, which involved only a small minority stake.
The numbers: Baud posted revenue of about US$63.6M for the year ended December 31, 2025, and US$23.6M for the five months to May 31, 2026. The consideration represents roughly 0.71 times FY2025 revenue and 1.89 times FY2025 gross profit of US$24M.
What's the rationale? FS.COM said it weighed Baud's revenue base, financial position, product and R&D platform, intellectual property, manufacturing capabilities, and expected synergies. The acquisition grants FS.COM full control over Baud's business, financial, and strategic decisions.
What could go wrong? The directors flagged Baud's net liability position, historical losses, and aggregate inventory write-down, bad debt, and other impairment provisions of about US$19.4M as adverse factors. The consideration also equals about 64.2% of Baud's total assets of US$70.7M as at May 31, 2026.
The signal: The price looks conservative against peers. FS.COM's Bloomberg screen of 37 comparable communication-equipment companies showed price-to-sales ratios from about 1.08 to 15.95 times, with a median of 4.92 times — well above the deal's sub-1x multiple, suggesting FS.COM secured a discounted foothold in a consolidating sector.
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