China's Orient Hontai to buy US mobile marketing platform
Chinese private equity firm Orient Hontai Capital has agreed to acquire a controlling stake in US-based mobile marketing platform provider AppLovin in a transaction valued at $1.4 billion.
The company claims to have never taken venture capital funding but has raised $4 million from angel investors including Eduardo Vivas, the head of product for Linkedin, and John Burbank, CEO of Passport Capital. It has also received investment from Webb Investment Network, an early-stage fund founded by Yahoo chairman Maynard Webb.
"This level of investment validates the outstanding product we've built," Adam Foroughi, AppLovin's co-founder and CEO said in a statement. "What's more, is the profound significance for the entire advertising industry given this is the most sizeable outcome for a mobile advertising company ever. We've seen a high volume of interest in our business, and we ultimately chose to partner with Orient Hontai because of their strong connections in the Chinese market."
Founded in 2011, AppLovin provides marketing automation that allows brands to acquire new consumers on mobile and Apple TV apps. The company claims to have been consistently profitable since its first year of operation and expects nearly $500 million in advertising income in 2016. According to Inc, the company generated $234 million in revenue last year. It is planning a phase of geographic expansion, but will maintain its headquarters and current team following the acquisition.
"AppLovin is the clear leader in mobile marketing automation and consistently delivers outstanding results for their customers," Tony Ma, CEO of Orient Hontai added. "As the mobile market grows, AppLovin is well-positioned to herald new innovations and a standard of excellence."
Orient Hontai Capital is a subsidiary of Orient Securities Capital Investment, which is wholly-owned by Shanghai-listed Orient Securities. It focuses on healthcare and media technology, with previous investments including gaming companies Shanda Games, China Mobile Games & Entertainment and FunPlus.
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