BEIJING, March 28, 2016 /PRNewswire/ -- China Distance
Education Holdings Limited (NYSE: DL) ("CDEL", or the "Company"), a
leading provider of online education in China focusing on professional
education, today announced that it signed a definitive
agreement on March 23, 2016 to
acquire an 80% equity interest in Xiamen NetinNet Software Co.,
Ltd. ("Xiamen NetinNet") for a total consideration of RMB212 million (US$32.6
million). Xiamen NetinNet is a leading learning simulation
software provider specializing in practical accounting-related
learning solutions for China's
college market. The acquisition is an all-cash transaction, and is
expected to close in CDEL's third quarter of fiscal 2016, subject
to the satisfaction of customary closing conditions. While Xiamen
NetinNet is profitable, CDEL expects the transaction to be dilutive
to its fiscal 2016 financial results, due to the seasonality of
Xiamen NetinNet's business and amortization of intangibles
attributable to the acquisition, yet slightly accretive to the
Company's fiscal 2017 financial results, based on CDEL's
preliminary assessment.
"We are delighted to announce the acquisition of Xiamen
NetinNet," said Mr. Zhengdong Zhu,
Chairman and CEO of CDEL. "This acquisition is highly complementary
to our business, as it will immediately bolster our growing College
Cooperation Program by enabling CDEL to better help college
students master critical accounting skills through practical
learning, and to prepare students for their future accounting
careers. In addition to enhancing our College Cooperation Program's
learning solution set, the acquisition of Xiamen NetinNet provides
both of us with unique cross-selling opportunities to further
develop and strengthen our business relationships with college
partners. While our strategy focuses on organic growth and
internally developed programs, we diligently evaluate acquisition
opportunities, and will use our resources for that purpose when a
company meets our financial and strategic criteria. Xiamen NetinNet
represents a perfect fit for our development of the college
market."
Mr. Sida Zhang, Chairman of Xiamen NetinNet commented, "We are
excited to join the CDEL team, and believe our focus on
China's college market, together
with our expertise in simulation technology and practical
accounting-related learning, will be a valuable addition to
CDEL."
About Xiamen NetinNet Software Co., Ltd.
Founded in 2005, Xiamen NetinNet Software Co., Ltd. ("Xiamen
NetinNet") provides learning simulation software tailored for
China's college market, and offers
a suite of accounting-related learning products. With more than
1,300 college customers across China utilizing its simulation learning
platform, Xiamen NetinNet is one of the leading providers of
practical accounting-related learning solutions in China's college market. Among Xiamen
NetinNet's college customers are leading Chinese universities,
including Peking University, Renmin University of China, Xiamen
University, Dongbei University of Finance & Economics, and Sun
Yat-Sen University.
About China Distance Education Holdings Limited
China Distance Education Holdings Limited is a leading provider
of online education in China
focusing on professional education. The courses offered by the
Company through its websites are designed to help professionals
seeking to obtain and maintain professional licenses and to enhance
their job skills through our professional development courses in
China in the areas of accounting,
health-care, engineering & construction, and other industries.
The Company also offers other professional education courses for
the national judicial examination, online test preparation courses
for self-taught learners pursuing higher education diplomas or
degrees, test preparation courses for university students intending
to take the nationwide graduate school entrance exam, and online
language courses. We also offer third-party developed online
courses through our Online Open Learning Platform, a proprietary
education platform that allows people to share their educational
content or deliver live courses online. For further information,
please visit http://ir.cdeledu.com.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by
terms such as "believe," "could," "expect," "future," "look forward
to," "plan," "should," "will," and similar terms. Examples of
forward-looking statements in this press release include statements
about the anticipated benefits of the acquisition to enhance CDEL's
College Cooperation Program, the ability of CDEL and Xiamen
NetinNet to cooperate effectively to strengthen the business
relationships with their respective college partners, and the
anticipated financial impact on fiscal 2016 and fiscal 2017
financial results. Forward-looking statements are not historical
facts, but instead are predictions about future events. Future
events are inherently uncertain, and our forward-looking statements
may turn out to be incorrect. The forward-looking statements in
this press release speak only as of the date on which they are
made, and we assume no obligation to update any forward-looking
statements except as required by law, and investors are cautioned
that actual results may differ materially from the anticipated
results.
Contacts:
China Distance
Education Holdings Limited
Investor Relations
Department
Tel:
+86-10-8231-9999 ext 1805
Email:
IR@cdeledu.com
|
The Piacente Group |
Investor Relations
Brandi
Piacente
Tel: +1
212-481-2050
Email:
dl@tpg-ir.com
|
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SOURCE China Distance Education Holdings Limited