Genimous Investment purchased Spigot INC. in Silicon Valley for $25.2 billion

 

      Genimous Investment (000676) today announced it purchased 100% equity interest of Spigot INC (hereinafter referred to as Spigot) in Silicon Valley for $ 251,696 million. This transaction is an important acquisition of Genimous Investment in its transformation in the field of the Internet. CV Capital is the financial adviser of the transaction.

      The predecessor of Genimous Investment is Henan Star Electronic Instrument Co., Ltd.,  which was establishment in 1996 with the approval of the Henan Provincial Commission for Restoration and then was listed on the Shenzhen Stock Exchange. The Company changed its name to Genimous Investment Co., Ltd. in January 2015 through two equity transfers in the year 2009 and 2014 respectively. The company mainly engaged in equity investment and asset management of electronic equipment, high-tech and related areas.

      Established in Silicon Valley, Spigot is the cross-platform solution provider that connects global advertisement customers with software developers. It has over 120 billion downloads of self-owned software and the third-party software and 6.6 million active month users of its various plugins. The advertisers of Spigot cover leading businesses of research, e-commerce and internet security products, and leading application program developers. These advertisers can get access to over 1 billion new users through Spigot, and provide for precision marketing. Spigot’s flexible monetization model makes it become a company with the highest profit and fastest  growing process of the industry.

The transaction is China's A-share listed companies’ the first case with large-scale that achieved Internet trade transformation through cross-border M&A of high-tech enterprises in the United States, which has important bench marking significance. In the general trend of domestic economic transformation, the transaction realizes the connection of the US cutting-edge technology, innovative business model and the Chinese market, and the achievement of value enhancement will attract more and more attention of the capital market. Meanwhile, the relatively rational valuation of the level and the demand for the allocation of foreign dollar assets of the US market will further promote such transactions.

The acquisition also marks the important step for Genimous Investment’s strategic transformation to the Internet platform. The main business of the listed company will be mobile Internet and it will gradually shrink its original business scale. Combined with the acquisition of the Falcon Network, App China and iFusion at the same time, the Internet platform built by Genimous Investment reaches collaboration in customer resources, sales channels, management, personnel training, among other aspects. The listed company will become a “three-in-one” mobile Internet company owning mobile Internet traffic portal, mobile Internet traffic management platform and business monetiazation channels of the Trinity .

As the financial adviser to cross-border M&A of China and the United States, the general manager of CV Investment and person in charge of the silicon valley, Yang Bin said that as an Internet company founded in silicon valley, Spigot’s extensive distribution network of markets outside of the United States and China as well as its continued growing ecological system will help Genimous Investment to quickly realize the global strategic layout and to occupy the commanding heights of science and technology in silicon valley, thus effectively build the global Internet platform for Genimous Investment, which is of great strategic significance and commercial value.