GigaMedia Limited, an online games and computing services provider, today announced that it has entered into a share purchase agreement to acquire a 70% equity interest in Strawberry Cosmetics Holding Limited, a global cosmetics e-commerce company. The total consideration payable by GigaMedia for the acquisition is approximately US$93.1 million.
Strawberry Cosmetics is an established online distribution and retail platform of beauty products, which owns and operates the website “StrawberryNET.com” and the related mobile application. It has a comprehensive sales and distribution network covering the major countries worldwide, with increasing contributions from the fast growing economies in Asia. StrawberryNET.com is translated into 38 languages, and has a customer base of over 3 million customers worldwide. Strawberry Cosmetics has also established a global sourcing network of a comprehensive range of beauty products with more than 700 brands and 30,000 stock keeping units. Consolidated sales revenues of Strawberry Cosmetics and its subsidiaries in the recent four years have been over US$200 million per annum. The revenue contribution is attributable mainly to the Oceania, United States and Europe markets. The Asian market still has considerable potential to grow. In this respect, Strawberry Cosmetics will benefit from the GigaMedia´s existing marketing resources for further expanding its Asian market and will integrate the GigaMedia´s technology expertise for enhancing its future product strategy.
Diversification and exposure to e-commerce – As Strawberry Cosmetics is an established and proven e-commerce platform with existing customer base, GigaMedia is of the view that the transaction would help diversify the GigaMedia’s overall business risks and broaden the GigaMedia’s business portfolio in the internet and technology sector, and allow GigaMedia to tap into the fast growing beauty and cosmetics e-commerce market.
GigaMedia sees potential significant synergies with Strawberry Cosmetics from leveraging the GigaMedia’s expertise in information technology, online and offline marketing, as well as its local connections in various Asian countries including China, Japan and South Korea.
The completion of the transaction is subject to GigaMedia’s shareholders’ approval at an extraordinary general meeting of shareholders to be held on August 5, 2015 and other customary conditions. The transaction is expected to be completed in the third quarter of 2015.
More information on GigaMedia can be obtained here: GigaMedia
