SINA Corporation, a leading Chinese online-media company and value-added information service provider, announced today it had completed its purchase of Crillion Corp for an initial payment of about US$8.7 million in cash and 195,593 newly issued SINA shares, the company said.
The remainder of the purchase price is to be paid on an earn-out basis over the next two years, on roughly a 1.5 to 2 times 2004 and 2005 earnings basis respectively, provided that Crillion’s pretax net income for 2004 and 2005 is over US$6.7 million and US$13.3 million, respectively.
The total consideration has a cap of US$125 million, of which 60% will be paid in cash and the remaining in SINA shares.
Based in Shenzhen, Crillon is a leading SMS valued-added service provider to temporary job seekers in Chinal, working with job centers around China to provide job referrals via wireless short messaging service (“SMS”) to a large number of job seekers in China.
The acquisition adds two million paying subscribers to SINA’s large existing user base and further solidifies SINA’s leading position in China’s mobile value-added service market.