Sun New Media announced that it has finalized an agreement to acquire Telefaith Holdings Limited, the parent company of Shengji Information Technology Ltd, one of China's leading providers of mobile media services.
The acquisition will fortify Sun New Media's growing presence in China's booming mobile media services market, giving SNMI's content providers, marketers, and business clients another critical channel for communicating with key Chinese consumers and businesses.
Shengji is a start-up company that brings a number of critical assets to Sun New Media. Most important is Shengji's proprietary technical platform for scalable delivery of mobile multimedia and m-coupons. Shengji has also acquired a mobile service provider license and established a powerful network of relationships with China Mobile and China Unicom, the key providers of mobile telecommunications services in China.
According to the agreement, Sun New Media will purchase 100% of the outstanding shares of Telefaith in exchange for 853,333 shares of common stock of SNMI. The 100% stake in Telefaith will give SNMI control over Shengji, its China-based subsidiary.
"Shengji's technology, license, and strong relationships with China's mobile service providers will be powerful assets for SNMI as it pioneers the development of some of China's most innovative, far-reaching, and high-impact interactive marketing channels," said Mr. Chen Xiaotao, President and COO of Sun New Media.