BEIJING, June 22 /PRNewswire-Asia/ -- KongZhong Corporation
(Nasdaq: KONG), a leading mobile Internet company in China, today announced
that it has entered into a definitive agreement to acquire the entire issued
share capital of Simlife International, Inc. ('Simlife'), a leading mobile
game developer in China. Upon the closing of the acquisition, Simlife would
become a wholly-owned subsidiary of the Company.
Commenting on the acquisition, Leilei Wang, the CEO and Chairman of the
Company, said, 'I'm excited to welcome the Simlife team to the Company.
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. One of Simlife's mobile games, X Dancery, was
selected by Nokia in 2009 as a Grand Prize winner in the Technology Showcase
category in the global Calling All Innovators contest for mobile applications
and solutions. We believe that Simlife's mobile games and development team
will be important additions to our own portfolio of mobile games and
development team. We also believe that Simlife's strong development
capabilities, including its self-developed 3D mobile game engine, can help
consolidate and extend the Company's leadership in the Chinese mobile games
market.'
The Company has agreed to pay US$3 million in cash to the shareholders of
Simlife. An additional payment of US$1.25 million in cash and the issuance of
6 million of the Company's ordinary shares (equivalent to 150,000 ADSs) to
certain shareholders of Simlife are contingent upon Simlife's performance in
the year subsequent to completion of the acquisition. IDGVC Partners, which
owns approximately 6.7% of the outstanding ordinary shares of the Company,
also owns approximately 30% of the issued share capital of Simlife.
About Simlife
Based in Xiamen, Fujian Province, China, Simlife was founded in 2002 and
is one of China's leading developers of mobile games. Two of Simlife's 3D
mobile games, Lament Island and X Dancery, which are based on its
self-developed 3D mobile game engine, have been recognized by various awards
as some of the most innovative mobile games in the mobile games industry.
About KongZhong
KongZhong Corporation is a leading mobile Internet company in China.
