TAIPEI, May 12, 2015 /PRNewswire/ -- GigaMedia
Limited (NASDAQ: GIGM) (the "Company") today announced that,
on May 8, 2015, the Company has
entered into a non-binding letter of intent (the "Letter of
Intent") with an independent third party in relation to the
Company's potential acquisition of a controlling interest in a
global cosmetics e-commerce company (the "Target") (the "
Potential Acquisition").
Information on the Target
The Target is an established online distribution and retail
platform of beauty products, with its own website and mobile
application. It has a comprehensive sales and distribution network
covering the major countries worldwide, with increasing
contributions from the fast growing economies in Asia. The Target has also established a global
sourcing network of a comprehensive range of beauty products with
more than 700 brands and 30,000 stock keeping units. The Target has
an annual net turnover of over US$ 200
million.
Major Reasons for the
Potential Acquisition
Diversification of the Company's existing business and
exposure to the fast growing cosmetics e-commerce market.
As the Target is an established and proven e-commerce platform with
existing customer base, the Company is of the view that the
Potential Acquisition would help diversify the Company's
overall business risks and broaden the Company's business portfolio
in the Internet and technology sector, and allow the Company to tap
into the fast growing beauty and cosmetics e-commerce market.
Potential synergies with the Target. The
Company sees potential significant synergies with the Target from
leveraging the Company's expertise in information technology,
online and offline marketing, as well as its local connections in
various Asian countries.
The Letter of Intent does not constitute any legally binding
obligations on the parties in relation to the Potential
Acquisition. The Potential Acquisition is subject to satisfactory
due diligence by the Company, negotiation of the definitive binding
agreements, obtaining of all the necessary corporate and regulatory
approvals and waivers.
About GigaMedia
Headquartered in Taipei,
Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is
a diversified provider of online games and cloud computing
services. GigaMedia's online games business is an innovative leader
in Asia with growing game
development, distribution and operation capabilities, as well as
platform services for games; focus is on mobile games and social
casino games. The company's cloud computing business is focused on
providing enterprises in Greater
China with critical communications services and IT solutions
that increase flexibility, efficiency and competitiveness. More
information on GigaMedia can be obtained from
http://www.gigamedia.com/.
The statements included above and elsewhere in this press
release that are not historical in nature are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. GigaMedia
cautions readers that forward-looking statements are based on the
company's current expectations and involve a number of risks and
uncertainties. Actual results may differ materially from those
contained in such forward-looking statements. Information as to
certain factors that could cause actual results to vary can be
found in GigaMedia's Annual Report on Form 20-F filed with the
United States Securities and Exchange Commission in April 2014.
For further information contact:
Amanda Chang
Investor Relations Department
Country/City Code 8862 Tel: 2656-8080
amanda.chang@gigamedia.com.tw
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SOURCE GigaMedia Limited