China Finance Online to acquire Shenzhen Genius Information Technology
10 July 2006 | 1196 views | 0
Source: China Finance Online
China Finance Online Co. Limited (Nasdaq: JRJC "CFO"), a leading Chinese online financial information and listed company data provider, today announced that it, together with its affiliate, entered into an agreement on July 3, 2006 to acquire Shenzhen Genius Information Technology Co., Ltd (Genius), a financial information database provider mainly serving domestic securities and investment firms.
This acquisition is expected to strengthen the Company's leading position in the industry and to provide future opportunities to develop database products.
According to the acquisition agreement, CFO and its affiliate will pay US$1,000,000 to Genius's shareholders in exchange for 100% of the equity of Genius. Further, CFO will pay HK$484,425 (approximately US$62,370) to a shareholder in satisfaction of outstanding amounts owed by Genius pursuant to a prior loan made by such shareholder. The acquisition is subject to PRC regulatory approvals and other customary closing conditions and is expected to close by the end of August 2006.
Genius engages in the business of constructing and maintaining financial information databases and providing networked information solution. It was the first company of its kind in China to build databases and to provide electronic information networks for domestic securities and investment firms at the time of its establishment in 1994.
"This acquisition will be an important achievement for China Finance Online. I believe that the combination of two highly complementary organizations and product families may generate additional shareholder value and provide new growth opportunities to CFO. I also believe that Genius's products and technology may enhance our market-leading position by offering products and services with greater value to our customers," continued Zhao, Zhiwei, Chief Executive Officer of China Finance Online. "CFO is currently relying on our partners to supply us with historical data and information on listed companies, bonds and mutual funds. We expect to continue maintaining such good and solid contractual relationships with them after this transaction and I am confident that all these arrangements will be transparent to both our customers and our partners."