Tom Online (TOMO) announced it will acquire the entire issued share capital of Whole Win Investments Ltd, a fast-growing 2.5G services provider, to continue to expand its share in the country's dynamic wireless internet market.
The only portal that is ranked among the top three by revenues in a wide range of wireless internet products such as WAP (wireless application protocol), IVR (interactive voice response) and MMS (multimedia messaging services), TOM Online has signed an agreement to pay HK$25.35 million for the purchase of Whole Win. The total consideration could be adjusted to up to HK$64.79 million depending on the firm's profitability in 2004.
Whole Win is a key provider of WAP services in China. Based on Whole Win's unaudited figures, the company generated revenues of HK$5.83 million from its WAP business in the eight months ended 31 August 2004.
"The purchase of Whole Win, which has been successful in growing its wireless internet services, will further consolidate Tom Online's position as the leading provider of 2.5G services," said Wang Lei Lei, Chief Executive Officer and Executive Director of TOom Online.
"The transaction will broaden Tom Online's range of popular mobile internet products at a time when China's 2.5G market is showing signs of entering into a new phase of growth," he added.