Camera sensor chip maker OmniVision Technologies, Inc. (NASDAQ:OVTI) announced today that it received a preliminary acquisition proposal from a group of investors led by China’s Hua Capital Management Ltd.

OmniVision

The digital imaging solutions provider has diversified its business into multiple geographies, especially in Asia.

OmniVision’s diversification effort

Santa Clara, California-based OmniVision Technologies, Inc. (NASDAQ:OVTI)’s chips are used in smartphone and tablet cameras, including Apple Inc’s iPhones. The company competes with Sony Corp, Samsung Electronics Co and Himax Technologies Inc.

OmniVision Technologies, Inc. (NASDAQ:OVTI) has benefited for some time by providing a number of components for Apple’s iPhone, but the company has been branching out in recent quarters in order to capture more of the lower-end smartphone market.

The company is witnessing growth in emerging automotive as well as security markets. OmniVision is also working on products that have long-term potential. Its key products include CameraChip and CameraCubeChip, which are integrated, single-chip CMOS image sensors for consumer and commercial applications, including mobile phones and tablets, surveillance systems and medical imaging systems, among others.

Buyout offer from Chinese group

OmniVision Technologies, Inc. (NASDAQ:OVTI) said it has received Tuesday a buyout offer from Beijing-based Hua Capital Management, an investment firm backed by state-owned Shanghai Pudong Science and Technology Investment Co. Ltd. OmniVision said in a statement that it is reviewing the proposal and has retained J.P. Morgan as a financial adviser.

In its statement, the OmniVision Technologies, Inc. (NASDAQ:OVTI) clarified that there can be no assurance that any definitive offer will be made or that any agreement will be executed. Moreover, the company stated that it doesn’t undertake any obligation to provide updates with respect to the transaction, except as required under applicable law.

The Chinese group’s offer price of $29 per share in cash values OmniVision Technologies, Inc. (NASDAQ:OVTI) at $1.67 billion, and represents a premium of 17.9% to the stock’s Wednesday close.

Aided by higher gross margins and lower inventories, OmniVision reported better-than-anticipated fourth-quarter profit and revenue in its May earnings report.