NQ Mobile Acquires 100% Stake in Feiliu
NQ Mobile, 11/12/12
Chinese mobile security provider NQ Mobile (NYSE: NQ) today announced that it has entered into a definitive agreement to acquire the controlling stake of Beijing-based mobile application developer Feiliu Jiutian Technology (FL Mobile) not already owned by NQ Mobile. As part of the acquisition, NQ Mobile expects to provide restricted shares and a performance-based earn out if FL Mobile continues to achieve certain performance milestones.
Founded in 2009, FL Mobile is a mobile interest-based community platform with coverage in China that engages users in real-time mobile online activities. FL Mobile provides application recommendation services, interest-based exchanges, and mobile games to its user communities. FL Mobile has over 57 mln registered users and 12 mln monthly active users and is the most used mobile online game distribution platform on iOS in China as of September 30, 2012, according to third party research firm Sino-MR.
NQ Mobile will acquire the remaining 77.8% of FL Mobile that it does not already own by issuing up to approximately 30.8 mln restricted common shares (equivalent to 6.2 mln American depositary shares) in NQ Mobile to the founders of FL Mobile, who will remain with the company after the acquisition, if FL Mobile meets certain performance-based milestones. The shares to be issued include approximately 18.5 mln restricted common shares (equivalent to 3.7 mln ADSs ) at the closing of the transaction and a performance-based earn out of up to approximately 12.3 mln restricted common shares (equivalent to 2.5 mln ADSs ). Following the transaction, which is expected to close in the fourth quarter of 2012, NQ Mobile will own 100% of FL Mobile and expects the transaction to be earnings accretive in 2013.
Keywords: wireless active users registered users FL Mobile NQ NQ Mobile mobile gaming M&A mobile online gaming
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