Sohu.com (SOHU) today announced it has entered into a definitive agreement to acquire Go2Map Inc. and Go2Map Inc.'s affiliate, Beijing Tu Xing Tian Xia Information Consultancy Co., Ltd., one of the leading online mapping service providers in China.
Sohu will pay US$9.3 million in cash to acquire Go2Map, of which US$400,000 has been paid as of the signing of the share purchase agreement, US$8.9 million will be paid upon the closing of the acquisition and an additional amount, not to exceed US$2.5 million, will be paid over 2 years after the closing of the acquisition, subject to the satisfaction and attainment of certain post closing operating and financial milestones of Go2Map.
The acquisition will enable Sohu to apply Go2Map's rich technological expertise in professional location-based information to Sohu's search engine capabilities as well as online website content.
Go2Map is one of the leading mapping service solution providers in China. Its mapping information platform enables online mapping services through different Internet/Intranet platforms, mobile phones, call centers and PDAs. Go2Map's database covers points of interests in 200 cities across China, which has enabled it to develop multiple business applications, including sales of software and map information resources. Go2Map also provides web surfers a free on-line mapping inquiry system in 14 cities.
"Through this acquisition we expect to quickly establish a market position in mapping solutions for nearly 100 million Internet users who increasingly rely on online technology to find city destinations such as government offices, restaurants and hotels, and bus line information. We believe the acquisition will also enhance our overall competitive strength as a portal and search engine as we enrich our online content and search engine with location-based information," said Charles Zhang, Chairman and CEO of Sohu.