ChinaNet Online Holdings Announces Acquisition of Remaining Equity Interest in Sou Yi Lian Mei Network Technology Limited
September 17 2012 - 7:30AM
ChinaNet Online Holdings, Inc. (Nasdaq:CNET) (the "Company"), a
leading B2B (business to business) Internet technology company
focusing on providing online-to-offline ("O2O") sales channel
expansion services for small and medium-sized enterprises ("SMEs")
and entrepreneurial management and networking services for
entrepreneurs in the People's Republic of China, today announced
that it will purchase the remaining 49% of the equity interest in
Sou Yi Lian Mei Network Technology (Beijing) Co. Ltd. ("SouYi") for
approximately $6.5 million in cash.
Mr. George Chu, COO of ChinaNet, explained, "This acquisition
further broadens our client base to smaller startup businesses that
are growing quickly and generate higher profit margins for
ChinaNet. After working with SouYi's talented team over the past
nine months, we became even more convinced that both companies
could accelerate our growth by being fully integrated into one
entity. This move will help ChinaNet to address all segments of
over 40 million small businesses in China and satisfy their
business expansion needs."
Founded in 2007, SouYi provides online advertising and marketing
services to small startup businesses. SouYi generated approximately
$6.8 million in revenue and approximately $2.2 million in profit in
2011 and is estimated to generate approximately $7.8 million in
revenue and approximately $2.4 million in profit in 2012. ChinaNet
will integrate SouYi into ChinaNet's advertising and marketing
platform and join 28.com and Liansuo.com to serve the full range of
small business clients over the next six months.
The Company will fund the acquisition through cash on hand and
operating cash flows. ChinaNet expects the transaction to close by
the end of the fourth quarter of 2012. Upon closing, SouYi will
become a wholly-owned subsidiary of the Company.
About ChinaNet Online Holdings, Inc.
The Company, a parent company of ChinaNet Online Media Group
Ltd., incorporated in the BVI ("ChinaNet"), is a leading B2B
(business to business) Internet technology company focusing on
providing O2O (online to offline) sales channel expansion service
for small and medium-sized enterprises (SMEs) and entrepreneurial
management and networking service for entrepreneurs in China. The
Company, through certain contractual arrangements with operating
companies in the PRC, provides Internet advertising and other
services for Chinese SMEs via its portal websites, 28.com,
Liansuo.com and Chuangye.com, TV commercials and program production
via China-Net TV, and in-house LCD advertising on banking kiosks
targeting Chinese banking patrons. Website:
http://www.chinanet-online.com.
Safe Harbor
This release contains certain "forward-looking statements"
relating to the business of ChinaNet Online Holdings, Inc., which
can be identified by the use of forward-looking terminology such as
"believes," "expects," "anticipates," "estimates" or similar
expressions. Such forward-looking statements involve known and
unknown risks and uncertainties, including business uncertainties
relating to government regulation of our industry, market demand,
reliance on key personnel, future capital requirements, competition
in general and other factors that may cause actual results to be
materially different from those described herein as anticipated,
believed, estimated or expected. Certain of these risks and
uncertainties are or will be described in greater detail in our
filings with the Securities and Exchange Commission. These
forward-looking statements are based on ChinaNet's current
expectations and beliefs concerning future developments and their
potential effects on the company. There can be no assurance that
future developments affecting ChinaNet will be those anticipated by
ChinaNet. These forward-looking statements involve a number of
risks, uncertainties (some of which are beyond the control of the
Company) or other assumptions that may cause actual results or
performance to be materially different from those expressed or
implied by such forward-looking statements. ChinaNet undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required under applicable securities
laws.
CONTACT: MZ North America
Ted Haberfield, President
Tel: +1-760-755-2716
Email: thaberfield@mzgroup.us
Web: www.mzgroup.us
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