Morrison Foerster Advised Ascendent on Its US$1.66 Billion Acquisition of Hollysys

Morrison Foerster (“MoFo”) has advised long-time client Ascendent Capital Partners (“Ascendent”) on its acquisition of Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) (“Hollysys”), a leading automation control system solutions provider in China. The acquisition, which was announced on December 11, 2023 and completed on July 25, 2024 through an all-cash transaction, valued Hollysys at approximately US$1.66 billion. Ascendent acquired all outstanding shares of Hollysys for US$26.50 per share in cash.

Founded in 1993, Hollysys is a leading automation control system solutions provider in China, with overseas operations in eight other countries and regions throughout Asia. Leveraging its proprietary technology and deep industry know-how, Hollysys empowers its customers with business-critical enhanced operational safety, reliability, efficiency and intelligence.

Leon Meng, Founding Managing Partner and Chairman of Ascendent, said: “We are delighted to complete the acquisition of Hollysys. We look forward to working constructively with the key management and employees of the Company to bring our vision to the business and create the best possible outcome for the staff and customers of Hollysys in the future.”

Marcia Ellis, Hong Kong partner and global co-chair of MoFo’s Private Equity Group, commented: “We are proud to have assisted Ascendent in its take private of Hollysys. This successful privatization underscores the MoFo team’s profound capability to address novel legal issues and navigate a complex dealmaking environment. Our innovative approach, deep expertise and seamless coordination across practices and time zones were pivotal in achieving this remarkable outcome for our client.”

Commenting on MoFo’s representation of Ascendent, Leon Meng said: “We commend the MoFo team for their exceptional expertise and unwavering dedication in navigating and successfully completing this high-profile and groundbreaking transaction, setting a new benchmark in a market where the ability to adapt and find innovative solutions is priceless.”

The successful completion of this transaction underscores MoFo’s deep expertise in advising clients on complex transactions involving Chinese companies listed in the U.S. Of all the completed privatizations of Chinese companies listed in the U.S. that valued the target company at over US$1 billion, only two (including this transaction) were completed by consortiums not involving a controlling shareholder or management, and both transactions were successfully closed with MoFo acting as buyer’s counsel.

The global MoFo deal team advising Ascendent on the acquisition is led by Marcia Ellis (Hong Kong), partner and global co-chair of the firm’s Private Equity Group; Spencer Klein (New York), partner and global co-chair of the firm’s M&A Group; Private Equity/M&A partner Rongjing Zhao (Shanghai); Private Equity/M&A associate Yilong Luo (Hong Kong); Serena Tan (Hong Kong), partner and deputy chair of the firm’s global Private Funds Group, for fund formation matters; Yemi Tépé (Singapore), partner and global co-chair of the firm’s Finance Group, for finance matters; and Litigation partner Andrew Meyer (Tokyo) for litigation matters.