Model Car Manufacturer Xinghui Auto Model to Buy Gaming Company
Xinghui Auto Model, 10/18/13
Guangdong-based model car manufacturer Xinghui Auto Model (300043.SZ) has announced that the company will acquire a 100% stake in Guangdong-based online ad agency and online and mobile game developer Teamtop for RMB 812 mln.
Teamtop was founded in 2000 as a search engine marketing firm. In 2010, Teamtop began developing its first browser game, and now releases mobile and browser games on a "develop then license" model. In 2012, Teamtop released its self-developed browser game Yitian on Tencent's (0700.HK) open platform, recording monthly revenues as high as RMB 40 mln. As of September, Teamtop's self-developed games have totaled more than RMB 500 mln in user recharge value. For the 9 months ended September 30, Teamtop's revenue was RMB 135 mln, with approximately RMB 50 mln in profit.
Xinghui Auto Model's acquisition of Teamtop will be funded by RMB 411 in cash and an additional private placement of RMB 401 mln in equity. Teamtop has guaranteed net profits of RMB 60 mln, RMB 80 mln, RMB 97 mln, RMB 115 mln, and RMB 120 mln for each year from 2013 to 2017, respectively.
Keywords: mobile gaming Xinghui Auto Model browser game online gaming Teamtop Yitian M&A 300043.SZ
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