Located in Beijing, China, KongZhong is a leading provider of digital entertainment services for consumers in China. Today, the young company took a major step towards prominence with the announcement it has entered into definitive agreements to acquire 100% of the equity interest in Noumena Innovations (BVI) Ltd and certain assets from a related party.
The total consideration for the acquisition is $15 million, which is payable over three years from the closing of the transactions, and 40.0 million of the company's ordinary shares, which are subject to a three year lock up period.
The company intends to integrate the Noumena team into its existing mobile game development team of more than 100 employees in order to create new smartphone mobile games that will take advantage of the Handymo game engine technologies. The company believes this new generation of smartphone mobile games will enable it to leverage its existing mobile game distribution channels in China and capture market share in the nascent PRC smartphone mobile games market, separate from the company's existing feature phone mobile game business.
Currently, KongZhong is trading in the $4.48 range. To learn more about the company as a whole, visit their corporate website at http://ir.kongzhong.com
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