Advance long term business interests of both companies
Jingwei International (JNGW), a provider of data-mining, interactive marketing and software services has signed a framework agreement with Shanghai Haicom Telecommunication (Haicom) to acquire all of the outstanding equity interests of Haicom to advance the long term business interests of both companies.
As per the agreement, Jingwei will pay Haicom total consideration of up to $8.2m, consisting of cash of $5.2m, and stock of up to $3m, payable in phases based on performance milestones.
The issuance of the company shares to Haicom is contingent upon the achievement of a minimum level of revenue and earnings targets by the acquired business mutually agreed upon by the parties for the fiscal year ending 31 December 2011.
Jingwei International chairman George Du said, this acquisition allows them to offer their customers and partners enhanced data mining and interactive marketing services, wider distribution capabilities and broader product offerings, all of which they believe will strengthen Jingwei’s market position.
Haicom is an Internet and mobile value added service platform provider based in Shanghai with business operations covering over ten provinces in China.
It develops 3G system offerings and provides interactive marketing services to financial institutions and major telecom carriers in China.