KongZhong (KONG) to Acquire Noumena Innovations in $15M Cash, 40M Common Deal
Tweet Send to a FriendGet Alerts KONG Hot Sheet
Trade KONG Now!
KongZhong Corporation (Nasdaq: KONG), announced it has entered into definitive agreements to acquire 100% of the equity interest in Noumena Innovations (BVI) Ltd. ("Noumena") and certain assets from a related party of Noumena for a total consideration of US$15.0 million in cash, which is payable over three years from the closing of the transactions, and 40.0 million of the Company's ordinary shares (equivalent to 1.0 million ADSs), which are subject to a three-year lock-up period. The board of directors of the Company has approved the transactions, and the transactions are expected to close in the first quarter of 2012.
The Company intends to integrate the Noumena team into its existing mobile game development team (of more than 100 employees) in order to create new smartphone mobile games that will take advantage of the Handymo game engine technologies. The Company believes this new generation of smartphone mobile games will enable it to leverage its existing mobile game distribution channels in China and capture market share in the nascent PRC smartphone mobile games market, separate from the Company's existing featurephone mobile game business. Moreover, the Company believes these new games will also enable it to expand its market presence in the overseas smartphone mobile games market with a focus on the "freemium" mobile games sector of the market.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The Company intends to integrate the Noumena team into its existing mobile game development team (of more than 100 employees) in order to create new smartphone mobile games that will take advantage of the Handymo game engine technologies. The Company believes this new generation of smartphone mobile games will enable it to leverage its existing mobile game distribution channels in China and capture market share in the nascent PRC smartphone mobile games market, separate from the Company's existing featurephone mobile game business. Moreover, the Company believes these new games will also enable it to expand its market presence in the overseas smartphone mobile games market with a focus on the "freemium" mobile games sector of the market.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Dish Network (DISH) CEO Offers $2 Billion for Lightsquared Spectrum - Bloomberg
- Royalty Pharma Raises Elan (ELN) Bid to $12.50/share
- UPDATE: Correct: Buying Warner Chilcott plc (WCRX) Seen as Takeover Defense by Actavis (ACT)
Create E-mail Alert Related Categories
Mergers and Acquisitions
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
