ATA Announces Entry into Definitive Agreement to Acquire Beijing Biztour, a Leading China-based Service Provider of B2B Inter...
August 16 2018 - 4:06PM
ATA Inc. ("ATA" or the "Company") (Nasdaq:ATAI), a
company focused on providing students with quality educational
experiences and services in China and abroad, today announced that
the Company has entered into a definitive agreement for the
acquisition of Beijing Biztour International Travel Service Co.,
Ltd. (“Beijing Biztour”), a provider of international educational
study tour and travel services for students in China who are
interested in overseas study tours primarily in the U.S., United
Kingdom, and Australia.
As previously announced in a press release on
March 26, 2018, the Company had entered into a framework agreement
for strategic investment in Beijing Biztour, which included a
six-month exclusive negotiation period with Beijing Biztour during
which ATA would conduct due diligence and determine whether it
would work toward a definitive acquisition agreement with Beijing
Biztour to acquire 100% of the company’s shares.
ATA to Acquire Beijing Biztour for
RMB50.0 MillionUnder the terms of the definitive
acquisition agreement, ATA will acquire 100% of the shares of
Beijing Biztour for a total purchase price of RMB50.0 million,
consisting of an RMB37.43 million payment, 50% payable in cash and
50% payable in newly issued shares of ATA, and issuance of RMB12.57
million worth of incentive stock compensation for staff of Beijing
Biztour over a three-year period. Share consideration is calculated
based on a pre-dilution valuation of US$150 million for ATA.
Management of Beijing Biztour is expected to stay on and work with
ATA management on growing the business.
The Company will file a Form 6-K containing
the definitive acquisition agreement and additional information,
which investors may access on the SEC Filings page on ATA’s website
or on the U.S. Securities and Exchange Commission website at
www.sec.gov.
Beijing Biztour – A Leading Provider of
B2B Educational Tour Services in ChinaBeijing Biztour
specializes in providing comprehensive affordable, high-end
solutions for study tour products, which include overseas learning
and tour service provisions. Through its B2B distribution network,
Beijing Biztour serves more than 7,000 students each year and is
one of the largest educational tour service providers in China.
Beijing Biztour has an extensive global network of overseas
partners including 1,100 host families, 300 part-time team members
in the U.S. alone, and close relationships with many well-regarded
school districts and top universities including Harvard, Columbia,
Stanford and MIT. Beijing Biztour also partners with over 200
education camps focused on a variety of subjects and over 300
globally recognized companies. Serving students from all over
China, Beijing Biztour has more than 300 study tour products in
over 15 categories, including language, sport, art, math, robotics,
technology, leadership, and outdoor activities, in more than 30
international study tour destinations.
Mr. Jack Huang, ATA’s President, stated, “We are
pleased to have this opportunity to continue partnering with the
Beijing Biztour team and look forward to working closely with
management on growing the business and pursuing prospects for
expansion and diversification by leveraging ATA’s expertise in
learning technologies and industry relationships, as well as the
synergies between our operational capabilities, resources and
competencies. As one of China’s largest international study tour
service providers, Beijing Biztour possesses an extensive network
of education and service partners in the U.S. and abroad. The
company is well positioned to take advantage of the growing demand
for study tours in China by leveraging its experience and knowledge
in curating unique and enriching experiences for the Chinese
students. We are excited about the growth opportunities afforded by
this acquisition and are looking forward to this next stage of
ATA’s evolution.”
ATA Outlines Expansion Strategy for 2018
and BeyondLed by its experienced leadership team, ATA
believes that it can leverage its expertise in competency-focused
assessment/education service capabilities and industry
relationships to scale the growth of well-established education
enterprises such as Beijing Biztour to expand its presence in China
and beyond, transforming the Company into a leading international
education service provider.
The initial goal would be to increase outreach
to support a growing population of students that want to expand
their learning beyond the classroom, through educational travel
experiences. Driven by increased demand for more diverse
international education opportunities by urban families in
China, the international educational travel market is particularly
attractive as a growing number of China-based students seek short-
and long-term international education opportunities. China remains
the world’s no. 1 source of international students and sends the
largest number of students overseas for study. According to the
Ministry of Education, 544,500 Chinese students pursued study
abroad opportunities in 2016, more than triple the 179,800 students
who sought overseas education in 2008.
About ATA Inc.ATA is focused on
providing quality educational experiences and services for students
throughout China and abroad. ATA aims to offer online, on-campus,
and other education programs through a network of global education
partners. For more information, please visit ATA’s website at
www.atai.net.cn.
Cautionary Note Regarding
Forward-looking StatementsThis 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
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 ATA’s
plan and efforts to transform itself into a leading international
education service provider; ATA’s anticipated acquisition of
Beijing Biztour and subsequent business activities; the anticipated
benefits to ATA’s expansion efforts into the international
education market; and the ability of ATA and Beijing Biztour to
cooperate effectively and to introduce offerings and build
partnerships. These forward-looking statements involve known and
unknown risks and uncertainties, are based on current expectations,
assumptions, estimates, and projections by both ATA and Beijing
Biztour, and are subject to governmental approvals and other
conditions. The Company undertakes no obligation to update
forward-looking statements, except as may be required by law. The
Company cannot assure you that its expectations and assumptions
will turn out to be correct, and investors are cautioned that
actual results may differ materially from the anticipated
results.
For
more information on our company, please contact the following
individuals: |
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At
the Company ATA Inc.Amy Tung, Chief Financial Officer+86 10 6518
1122 x5518amytung@atai.net.cn |
Investor Relations The Equity Group Inc.Carolyne Y. Sohn, Senior
Associate415-568-2255csohn@equityny.com |
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Katherine Yao, Senior Associate+86 10 6587
6435kyao@equityny.com |
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Adam Prior, Senior Vice
President212-836-9606aprior@equityny.com |
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