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Thunisoft to acquire Lianyi
Posted on Monday, 20 March 2017 07:58
Beijing Thunisoft (Thunisoft) is carrying out its largest deal ever, according to Zephyr, the M&A database published by Bureau van Dijk, by acquiring Lianyi Technology (Lianyi) for CNY 1.49 billion (USD 215.70 million).
The buyer, which is hoping to expand into the education sector, is paying cash and giving the sellers a 16.7 per cent stake in the combined group.
Lianyi, a developer of software for universities, is currently owned by investors including Shihezi Dingnuo and private equity firm Shanghai Score Ruixin.
Its systems allow users to navigate around campuses and monitor crowd density in a particular area.
Founded in 2001, Thunisoft mainly develops software for public institutions, such as judicial bodies and government agencies.
To fund the acquisition, the buyer is concurrently raising around CNY 490.00 million via a private placing from up to five subscribers, including its chairman Shao Yue.
Thunisoft has appointed Huatai United Securities as a financial advisor and the transactions remain subject to approvals from shareholders and the China Securities Regulatory Commission.
Listed on the Shenzhen Stock Exchange, the acquiror posted revenue of CNY 1.82 billion in the 12 months ended 31stDecember 2016, up 34.7 per cent on the CNY 1.35 billion recorded in the previous year.
Net profit for the period totalled CNY 271.69 million, compared to CNY 208.46 million in 2015.
Thunisoft’s shares closed at CNY 17.45 on 16th December 2016, the last day before trading was halted, valuing the group at around CNY 11.62 billion.
According to Zephyr, there have been 494 other announced or completed deals targeting Chinese software developers this year, with Beijing iQiyi Technology’s funding round being the largest.
The online video streaming company successfully raised USD 1.53 billion last month from subscribers, which included Baidu, Hillhouse Capital Management and IDG Ventures.
© Zephus Ltd