TAIPEI, June 26, 2015 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) (the "Company"), an online games and
computing services provider, today announced that it has entered
into a share purchase agreement to acquire a 70% equity interest in
Strawberry Cosmetics Holding Limited ("Strawberry
Cosmetics"), a global cosmetics e-commerce company (the
"Transaction"). The total consideration payable by the
Company for the acquisition is approximately US$93.1 million.
Information on Strawberry Cosmetics
Strawberry Cosmetics is an established online distribution and
retail platform of beauty products, which owns and operates the
website "StrawberryNET.com" and the related 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. StrawberryNET.com is translated
into 38 languages, and has a customer base of over 3 million
customers worldwide. Strawberry Cosmetics 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.
Consolidated sales revenues of Strawberry Cosmetics and its
subsidiaries in the recent four years have been over US$200 million per annum. The revenue
contribution is attributable mainly to the Oceania, United States and Europe markets. The Asian market still
has considerable potential to grow. In this respect,
Strawberry Cosmetics will benefit from the Company's existing
marketing resources for further expanding its Asian market and will
integrate the Company's technology expertise for enhancing its
future product strategy.
Major Reasons for the
Transaction
Diversification and exposure to e-commerce - As
Strawberry Cosmetics is an established and proven e-commerce
platform with existing customer base, the Company is of the view
that the Transaction 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 - The Company sees potential
significant synergies with Strawberry Cosmetics from leveraging the
Company's expertise in information technology, online and offline
marketing, as well as its local connections in various Asian
countries including China,
Japan and South Korea.
The completion of the Transaction is subject to the Company's
shareholders' approval at an extraordinary general meeting of
shareholders to be held on August 5,
2015 and other customary conditions. The Transaction
is expected to be completed in the third quarter of 2015.
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
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 2015.
Amanda
Chang
Investor Relations Department
Country/City Code 8862 Tel: 2656-8080
amanda.chang@gigamedia.com.tw
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gigamedia-announces-signing-of-agreement-to-acquire-strawberry-cosmetics-holding-limited-300105370.html
SOURCE GigaMedia Limited