Chinese wireless value-added services firm KongZhong Corporation announced that it is planning to buy Simlife International Inc., a mobile game developer in China.
KongZhong has agreed to pay USD3 million in cash to the shareholders of Simlife. An additional payment of USD1.25 million in cash and the issuance of 6 million of KongZhong's ordinary shares to certain shareholders of Simlife are contingent upon Simlife's performance in the year subsequent to completion of the acquisition.
Wang Leilei, CEO and chairman of KongZhong, stated, "Simlife currently has a portfolio of over 200 mobile games and a development team of more than 50 members with years of experience in developing high-quality 3D mobile games."
IDGVC Partners, which owns approximately 6.7% of the outstanding ordinary shares of KongZhong, also owns approximately 30% of the issued share capital of Simlife.