Harbin Electric Inc, a developer and manufacturer of customized linear motors and other special electric motors, said it has agreed to acquire all the non-cash assets of Harbin Taifu Auto Electric Co Ltd.

Based on the closing price of Harbin's common stock on Friday, the transaction would be valued at around US$10.9 million, the company said.

Taifu Auto will receive US$4 million in cash and 473,354 common shares of Harbin Electric.