NQ Mobile, a global provider of mobile internet services, has agreed to sell a 3.4 percent stake of its subsidiary NationSky to Beijing Guorun Qilian Venture Capital Center for $18 million. Also, NQ Mobile is planning on selling up to 2.3 percent of NationSky for $12 million to other investors within the next two months. According to NQ Mobile, the capital infusion will be used for R&D, marketing, working capital activities and expansion of NationSky’s core operations.
BEIJING and DALLAS, June 10, 2014 /PRNewswire/ — NQ Mobile Inc. (“NQ Mobile” or the “Company”) (NYSE: NQ), a leading global provider of mobile Internet services, today announced that it has entered into a definitive agreement to sell a minority interest in its wholly owned subsidiary, Beijing NationSky Network Technology, Inc. (“NationSky”).
Specifically, NQ Mobile has signed a definitive agreement to sell 3.40% of NationSky for $18 million, at a pre-money valuation of $500 million or post-money valuation of $530 million, to Beijing Guorun Qilian Venture Capital Center (LP). In addition, NQ Mobile intends to sell up to 2.30% of NationSky for $12 million to other investors within the next two months. The funds will be used for research and development, marketing, working capital activities and the expansion of NationSky’s core operations. The investors have a right to demand the redemption of their shares if NationSky does not complete a qualified initial public offering, or find a third party buyer to acquire all or part of its shares for a valuation of at least $550 million for NationSky’s business within 24 months after the investment is completed.
“NationSky is one of a significant number of exciting and fast-growing businesses and assets that make our overall company unique and attractive,” said Dr. Henry Lin, co-Founder and co-CEO of NQ Mobile. “We are excited about this investment by Beijing Guorun Qilian Venture Capital Center and believe that NationSky will continue to be a leader in the enterprise mobility market in China.”
“We are excited about the opportunity to invest in NQ Mobile’s wholly owned subsidiary, NationSky,” said Mr. Wang Pengwei, Founding Partner of Beijing Guorun Qilian Venture Capital Center. “We believe that the enterprise mobility segment is important as more and more companies need help to maximize the productivity of their workforce and safety of their corporate data on the mobile Internet, and NationSky has a proven track record in the enterprise mobility market.”
About NQ Mobile
NQ Mobile Inc.(NYSE: NQ) is a leading global provider of mobile Internet services. NQ Mobile is a mobile security pioneer with proven competency to acquire, engage, and monetize customers globally. NQ Mobile’s portfolio includes mobile security and mobile games & advertising for the consumer market and consulting, mobile platforms and mobility services for the enterprise market. As of December 31, 2013, NQ Mobile maintained a large, global user base of 481 million registered user accounts and 136 million monthly active user accounts through its consumer mobile security business, 107 million registered user accounts and 20 million monthly active user accounts through its mobile games & advertising business and over 1,250 enterprise customers. NQ Mobile maintains dual headquarters in Dallas, Texas, USA and Beijing, China. For more information on NQ Mobile, please visit http://www.nq.com.