MICT Strategic Acquisition Secures Valuable Nationwide License to Enable Significant Expansion of Insurance Business in China...
February 04 2021 - 9:00AM
MICT, Inc. (Nasdaq: MICT) (“MICT” or the “Company”) today announces
the acquisition of an established Chinese insurance brokerage
company and its trading subsidiary, Beijing Fucheng Insurance
Brokerage Co., Ltd (“Fucheng”), which provides the Company with a
nationwide license that allows it to offer insurance brokerage
services for a broader range of insurance products, some of which
offer a significantly higher margin. In addition, the nationwide
license provides the Company with flexibility to create tailor-made
insurance products that it can leverage directly to customers or
through distribution partners as well as to procure better deals
with both our existing and new insurance company partners.
The nationwide license acquired from Fucheng,
which was acquired for approximately $5.7 million, including circa
$1 million on the balance sheet, and funded through MICT’s
considerable cash reserves, enables the Company to accelerate the
onboarding of new agents throughout China onto its platform. It
also creates the opportunity to promote its business through some
of China’s biggest online portals, which will provide
business-to-business-to-consumer (B2B2C) as well as
business-to-consumer (B2C) channels, each with higher margins. In
addition, the acquisition initiates the nationwide rollout of its
mobile application, which will facilitate access to those portals’
vast customer bases, offering MICT’S full complement of insurance
products.
“Our insurance platform performed better than
expected in December, followed by significant acceleration in
revenue growth in the month of January. The acquisition of Fucheng
and its license and permissions constitute an improvement in the
development and expansion of our insurance business. Through
continued execution, we expect this business to continue its rapid
growth shortly after the Chinese New Year holiday in late February,
putting us well ahead of our expectations,” commented MICT’s CEO
Darren Mercer.
About MICT
MICT, Inc. (NasdaqCM: MICT) operates through its
subsidiaries, GFH Intermediate Holdings Ltd. (“GFHI”) and Micronet
Ltd. (“Micronet”). GFHI’s versatile proprietary trading technology
platform is designed to serve a large number of high growth sectors
in the global fintech space. Primary areas of focus include online
brokerage for equities trading and wealth management services and
sales of insurance products in several high-growth foreign markets,
including Asia, where GFHI owns a substantial database of users.
Micronet operates in the growing telematics and commercial Mobile
Resource Management market, mainly in the United States and Europe.
Micronet designs, develops, manufactures, and sells mobile
computing solutions that provide fleet operators and field
workforces with computing solutions in challenging work
environments.
Forward-Looking Statements
Litigation Reform Act of 1995 and other U.S.
Federal securities laws. These forward-looking statements include,
but are not limited to, statements related to revenue targets, the
growth of the Chinese Insurance market and other statements that
are not historical facts. Such forward-looking statements and their
implications involve known and unknown risks, uncertainties and
other factors that may cause actual results or performance to
differ materially from those projected. The forward-looking
statements contained in this press release are subject to other
risks and uncertainties, including those discussed in the "Risk
Factors" section and elsewhere in the Company's annual report on
Form 10-K for the year ended December 31, 2019 and in subsequent
filings with the Securities and Exchange Commission. Except as
otherwise required by law, the Company is under no obligation to
(and expressly disclaims any such obligation to) update or alter
its forward-looking statements whether as a result of new
information, future events or otherwise.
Contacts:info@mict-inc.com(201) 225-0190
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