China Finance Online (JRJC) will acquire Shenzhen Genius Information Technology Company, a financial information database provider mainly serving domestic securities and investment firms.
According to the acquisition agreement, China Finance Online and its affiliate will pay US$1 million to Genius's shareholders in exchange for 100% of the equity of Genius.
CFO will also pay HK$484,425 to a shareholder in satisfaction of outstanding amounts owed by Genius pursuant to a prior loan made by such shareholder. The acquisition is subject to Chinese regulatory approvals and other customary closing conditions and is expected to close by the end of August 2006.
Genius engages in the business of constructing and maintaining financial information databases and providing networked information solution. It says it was the first company in China to build databases and to provide electronic information networks for domestic securities and investment firms at the time of its establishment in 1994.
