Shiteng Holdings (02562) plans to acquire a Chinese software as a service (SaaS) company

Zhitong Finance App News, Shiteng Holdings (02562) issued an announcement. Recently, the company signed a non-legally binding letter of intent to invest with the potential seller. The company plans to carry out potential acquisitions of at least 80% of the target company (potential target company, together with its subsidiaries, collectively known as potential target groups) as contained in the letter of intent. The cost of the potential acquisition will be determined after further negotiations between the contracting parties.

The potential target company is a limited company established in China. It is a leading SaaS platform in China, providing enterprises and commercial institutions with comprehensive omni-channel digital commerce, smart retail and supply chain solutions, and has a significant share of the Chinese SaaS market. The potential target group provides a wide range of SaaS solutions and has served more than 30,000 enterprise customers, covering various industries such as FMCG, electronics, clothing, healthcare and beauty. The potential target group has also established deep integration with more than 100 domestic and international channels, providing a range and depth of integration on a single platform that is difficult for other competitors to match. The potential target group processes more than 4 billion orders each year through its platform, and the total annual transaction value (GMV) exceeds RMB 500 billion.

Once implemented, the potential acquisition will bring transformative synergy benefits to the Group. The potential target group is not only a SaaS supplier, but also a strategic partner for the Group's future artificial intelligence business platform in China and Southeast Asia. In terms of customer base expansion and regional growth, the potential acquisition will provide the Group with an established network of immediate access to more than 30,000 enterprise and SME customers of potential target groups. This strategic asset will further strengthen the company's position as the preferred partner for Chinese companies to accelerate cross-border e-commerce and expand the Southeast Asian market, while also creating cross-selling opportunities between the Group's existing products (such as Synagie and Geene artificial intelligence platforms) and potential target groups' enterprise SaaS solutions. When the potential target group's SaaS solution is integrated with the group's Geene artificial intelligence platform, it will also create a cutting-edge artificial intelligence-driven SaaS platform, leading customers into a new era of AI-driven commerce. After merging with potential target groups, the Group will have one of the largest multi-channel commercial big data warehouses in China and Southeast Asia, and will have mature data analysis capabilities to gain a clear advantage in competition, thus bringing a new wave of technical capability improvements to existing and new customers.

The company is convinced that this potential acquisition will help grow the company's business, enhance the company's financial and operational performance, and lay a better foundation for the Group's long-term growth and market leadership in the global AI ecosystem, and accelerate the application and innovation of enterprise artificial intelligence.