Guangdong Alpha buys VC-backed China comics site U17
Guangdong Alpha Animation and Culture, a Chinese animation and entertainment firm, has agreed to acquire online comics platform U17.com for RMB904 million ($141 million), paving an exit for several VC backers including Northern Light Venture Capital (NLVC).
The merger is being called the largest acquisition in Chinese animation history. Shenzhen-listed Alpha said in a filing that the firm will acquire 100% of U17.com in a cash and stock deal.
China Culture Industrial Investment Fund owns 25% of U17, while Boxin Capital has 14%. NLVC has 4%. According to AVCJ Research, NLVC and China Culture Industrial Investment Fund invested an undisclosed sum in U17.com in May last year.
Upon completion of the deal, U17.com will be integrated into Alpha's Anime, Comic and Games (ACG) platform, a statement said. The transaction enables Alpha to create more diverse range of content and strengthen its position in providing creative content in China, it added.
"We have been approached by many big companies in the past two years for buying our shares or merger and acquisition deals. There are film and television groups, game associations, and other industry heavyweights. But we turned them away, for we believe U17.com needs a partner that truly appreciates the values of comics and animations and that, to us, was Alpha," Jingqi Zhou, founder of U17.com, said in the statement.
U17.com claims to have an average of 40 million hits a day and it has close to 7 million registered users. Its online platform distributes over 40,000 comics created by 20,000 cartoonists.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.