KongZhong Corporation is to acquire Shanghai Dacheng Network Technology for $80M

The Fusion Team have completed over 70 digital and media transactions for its private, corporate and private equity clients. For more information contact pkelly@fusioncorp.co.uk or visit our website
 
ACQUISITION 
FDN Database Reference:  F231109-272
 
Acquirer:  KongZhong Corporation
ACQ Web:  http://ir.kongzhong.com
Location:  China, Beijing
Region:  Asia
Description:  Mobile Internet company in China
Category:  Mobile
Contact 1:  Leilei Wang, Chief Executive Officer and Chairman of the Board of Directors
Contact 2:  Jay Chang, Chief Financial Officer 
 
Vendor:  Shanghai Dacheng Network Technology Co., Ltd
Location:  Chiana, Shanghai and Beijing
Region:  Asia
Description:  Developer of three-dimensional (3D) massively multi-player online role-playing games (MMORPGs). Their  newest 3D online game is Loong
Category: Online games
Contact 1:  Zhen Yang, chief executive officer and founder
Contact 2:  Jay Chang, Chief Financial Officer

Aprox. Value:  Based on Dacheng’s 2010 net profit after tax (NPAT), as calculated under US GAAP, the Company would pay up to US$80.0 million, in a mix of cash and the Company’s ordinary shares, to Dacheng’s shareholders.

The the key terms and features of the transaction are available here
 
Details:  KongZhong Corporation has entered into a definitive agreement to acquire Shanghai Dacheng Network Technology Co., Ltd. The transaction is expected to close in the first quarter of 2010.

Prior to the closing of the transaction, Dacheng will engage in a reorganization whereby an offshore holding company will be established, and Dacheng will enter into certain contractual arrangements with such holding company and/or its subsidiaries. The Company will purchase 100% of the outstanding equity interest of such holding company upon the completion of the reorganization.
 
Link: Press Release

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