Business
ZW Data Action Technologies Inc. Announces Planned Acquisition of Henan Baodun, Expanding to Short Videos Ecommerce
BEIJING, Sept. 15, 2022 (GLOBE NEWSWIRE) -- ZW Data Action Technologies, Inc. (Nasdaq: CNET) ("ZW Data" or the "Company"), an integrated online advertising,
About this update from Zw Data Action Technologies Inc.
[{"type":"text","content":"BEIJING, Sept. 15, 2022 (GLOBE NEWSWIRE) -- ZW Data Action Technologies, Inc. (Nasdaq: CNET) (\"ZW Data\" or the \"Company\"), an integrated online advertising, precision marketing, data analytics, and other value-added services company, today announced that it has signed a letter of intent (“LOI”), and has formally proposed an acquisition offer to Henan Baodun Information Technology Co., Ltd (“Baodun”). Pursuant to the LOI, the offer price and terms will be negotiated and determined upon completion of due diligence, and the completion of the transaction is envisaged in the fourth quarter of 2022. Upon the completion of the acquisition, Baodun will become a wholly-owned subsidiary of the Company, and will remain its independency in operation to provide one-stop eCommerce marketing service solutions and full agency operation services for customers. Baodun is a full-service internet marketing company integrating content marketing, advertising effect optimization and brand marketing. Baodun has the comprehensive agency qualification like ByteDance and Kuaishou, and can provide internet advertising and marketing resources on multiple client side product platforms, including but not limited to toutiao.com, ixigua.com, TikTok and Kuaishou. Its major cooperating clients include SF Express, Belle, and Tongrentang. Baodun generated approximately $50 million in annualized revenue in 2021 and expects to continue growing with a double digit’s growth rate this year. The strategic acquisition of Baodun is intended to enhance ZW Data’s competitiveness within the industry and especially in the short video platform market. The addition of Baodun, together with the Company’s current expertise in advertising, would significantly improve the Company’s strengths in short video advertising, merchandising and promotion business areas, and expand the social eCommerce business to onboard a new growth point. The Company expects that this acquisition will drive a meaningful increase in short and long-term ZW Data’s revenue. “We are excited to announce this planned acquisition of Baodun. The short video market has expansive development prospect, and nowadays, social media platforms such as TikTok and Kuaishou have billions of users domestically and internationally. The elite veterans of Baodun are primarily located in Zhengzhou, Henan Province and Guangzho...