Quebecor Subsidiary Nurun Inc. Acquires China Interactive
Friday, 03 February 2006
Nurun Inc., a subsidiary of Quebecor Media Inc., on January 26 announced the closing of the acquisition of China Interactive, based in Shanghai. With a staff of 35, China Interactive is a leading interactive marketing agency in China, providing global and local blue-chip clients with services ranging from integrated marketing communications strategies to Web development and online loyalty programs.
The acquisition of China Interactive will help Nurun strengthen relationships and better serve its North-American and European clients already established in China. It will also bring a portfolio of some global brands such as FAW-VW-Volkswagen, FAW-VW-Audi, Chivas Regal, Malibu, JCDecaux, Philips and Pepsi, and consequently help Nurun develop new business development opportunities, both in Asia and in its traditional markets.
"China is a key component of Nurun's development strategy," commented Jacques-Hervé Roubert, President and Chief Executive Officer of Nurun Inc. "This acquisition will undoubtedly reinforce our interactive communications capabilities thanks to a strategic and creative expertise developed in a particularly dynamic and innovative market, in a country that offers both leading-edge IT capabilities and integrated marketing competencies. Nurun will be better equipped to anticipate innovations and new trends in the interactivity marketplace," added Jacques-Hervé Roubert.
With more than 100 million Internet users, 53% broadband penetration, and above all more than 360 million mobile subscribers (according to recent studies conducted by China Daily and Morgan Stanley), China is a trailblazer in the development of paid mobile content and the integrated use of interactive media and wireless technology for relationship marketing and commercialization strategies.
Nurun in turn will provide China Interactive and its clients with a wide range of services and solutions which include global online branding and communications strategies, as well as the planning and implementation of interactive applications and technical platforms.
"We firmly believe that belonging to an international and well-established company like Nurun will strengthen our positions in our local market, and lay the foundations for solid growth in China and in Asia,” said Yann Lombard-Platet, Chief Executive Officer of China Interactive. "The combination of our respective interactive marketing services and IT expertise will help us provide all of our clients with a complete range of interactive services," added Annabella Yang, Chief Operating Officer of China Interactive.
As part of Nurun's global development strategy, this acquisition will support the company's objectives in terms of regional growth in new markets.
The acquisition will be effective on January 27, 2006, at the latest. As disclosed on September 28, 2005, and December 22, 2005, Nurun will pay a combination of cash and common shares of Nurun, and deferred payments of cash and common shares of Nurun, subject to certain adjustments linked to the performance of China Interactive.