Venustech to Acquire Big Data Company Hezhong
Venustech, 9/19/14
Beijing-based network security products provider Venustech Information Security (002439.SZ) has announced plans to acquire a 51% stake in Hangzhou-based big data solution provider Hezhong Information Technology. Venustech will use RMB 179 mln of its own cash on hand for the deal, giving Hezhong a valuation of RMB 350 mln.
Hezhong, founded in 2003, produces and sells products related to big data processing technology and secure data transmission. The company primarily serves customers in the public security, military and government sectors.
After the acquisition is completed, Venustech plans to acquire the remaining 49% stake in Hezhong for a price 17.5 times the company's 2014 net profit after tax.
As of August 31, 2014, Hezhong assets totaled RMB 169 mln with net assets of RMB 102 mln. In the first 8 months of the year, Hezhong's operating revenue was RMB 49.2 mln, with a profit of RMB 620,000.
Keywords: Hezhong information security profit revenue software Venustech 002439.SZ big data M&A
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