PacificNet Inc. has purchased a 51% interest in the Chinese infomercial marketing services firm ChinaGoHi for $10.2 million. The Minneapolis-based firm structured terms to pay 35% in cash and balance in approximately 835,000 restricted shares of stock.
ChinaGoHi has more than 600 employees and operates a 35,000- square-foot telemarketing center in Shenzhen, China.
The purchase agreement includes a guarantee from ChinaGoHi to generate $4 million in annual net profits and provides for an adjustment in the purchase price if ChinaGoHi fails to achieve that goal in the 2006 fiscal year.
PacificNet views this acquisition as a natural progression from China’s business-to-business call center services market into China’s the higher margin business-to-consumer infomercial services market, DRTV, customer relationship management and telemarketing industries, according to Tony Tong, chairman and CEO of PacificNet.
Through subsidiaries in China, PacificNet invests in and operates companies that provide call center and DRTV services in the world’s most populous nation.
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