Mergers and Acquisitions in China’ Internet Industry Has Been Blowout-It Has Finished 153 Deals in May of 2015
Source: http://www.southcn.com/ View: 291 Date: 2015-06-29

With concept of “internet +”, internet industry has become favorite one of mergers and acquisitions market. And then mergers and acquisitions in internet industry has been blowout in May of 2015. Recently, reporter knows from the latest report published by ZERO2IPO Research that each traditional industry is adjusting industrial structure of enterprises via mergers and acquisitions of internet enterprises, breaking through development concept of traditional enterprises, actively seeking transformation and accomplishing integration with “internet +”. According to statistics, the mergers and acquisition market in China has finished 153 deal cases only in May of 2015; among them there are 131 cases to disclose the amount that is near 4.675 billion USD. The average capital of each case is near 39.26 million USD. 

According to introduction, the mergers and acquisitions market in China has finished 153 deal cases in May of 2015; among them, there are 141 national cases which accounting for 92.2% of total amount; there are 121 cases to disclose amount that is 4.104 billion USD, which accounting for 87.8%. There are 11 international cases which accounting for 7.2 %, 9 cases to disclose money that is 570 million USD, which accounting for 12.2%; only 1 international case accounts for 0.6% of total amount, the disclosing money is 1.03 million USD which accounting for 0.1%.

As reporter see that Ctrip Computer Technology (Shanghai) Co., Ltd purchased 37.6% equity from Elong Information Technology (Beijing) Co., Ltd; and the delivery payment is 400 million USD which accounting for 6.9% of total disclosing amount in Apr. It was the biggest case in that month.

From the number of disclosure, the mergers and acquisitions cases in May of 2015 mainly distributes in 19 first-level industries including internet, finance, clean technology, IT, biological technology/medical health, real estate, electronic and optoelectronic devices, telecommunication and add-value business, machinery manufacturing, building/project and etc. From quantity of mergers and acquisitions cases, internet is located the first position which finished 26 cases which accounting for 16.9% of total cases; finance industry is paralleling located the second position which finished 17 cases, which accounting for 11% of total amount; clean technology industry is located in the third position which finished 15 cases, which accounting for 9.7% of total amount.

From number of disclosure cases, the Yangtze River Belt Economic Area is located in the first position that finished 43 cases, which accounting for 27.9% of total amount; Huabei % Huanghai & Bohai Economic Zone is located in the second position that finished 31 case, which accounting for 20.1% of total amount; South Coast Economic Area is located in the third position that finished 29 case, which accounting for 18.8% of total amount. From disclosure money of cases, Huabei & Huanghai & Bohai Economic Area is located in the first position and the disclosing money is 1.56 billion USD, which accounting for 30.1% of total disclosing amount; the Yangtze River Belt Economic Area is located in the second position and the money is 952 million USD, which accounting for 18.4% of total amount; South Coast Economic Area is located the third position and the money is 741 million USD, which accounting for 14.3% of total amount.

Besides that, there are 82 mergers and acquisitions cases supported by VC/PE covering IT, telecommunication and add-value businesses, electronic and optoelectronic devices, real estate, machinery manufacturing, internet, chain and retail.

Qun Li, analysts of ZERO2IPO Research indicates that since the “internet +” introduced from Keqiang Li, the prime minister, internet industry has become the most famous one in whole industries. Each traditional industry is seeking to transform; and it is most efficient way to accomplish strategic integration with “internet +” for traditional industries via mergers and acquisitions.

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