ChinaNetCenter officially announced the material assets restructuring draft, late on Tuesday, planning to acquire 97.82 percent stake in the global content delivery provider CDNetworks at 21.1 billion Yen (1.275 billion Yuan), through its wholly owned subsidiary in Hong Kong. Coincidentally, the CDN giant has confirmed the plan of purchasing 70 percent stake in Russian content delivery network CDN-Video. At the same time, ChinaNetCenter approved a $152 million self-own capital increase for its Hong Kong subsidiary.
All these intensive overseas acquisitions indicate that ChinaNetCenter is hitting a big milestone—the company will hopefully get CDN market share in Japan, Korea, and Russia, while opening the European CDN market. Industry insiders are commonly of the view that ChinaNetCenter is seeking for the target CDN companies in a global scale, which is expected to greatly reduce time for thoroughly globalizing the company business by consolidating the superior resources.
Since the listing, depending on the continually increased internet traffic, ChinaNetCenter has achieved accelerated organic growth, making it the name of highly-growing firm on the Growth Enterprise Market (GEM). Under the background of global M&A, it’s no accident that ChinaNetCenter wants to benefit from the trend via making some acquisitions of popular international CDN companies.
The CDN provider has possessed remarkable strength in the past years and it is poised to rise to the top in 2017. ChinaNetCenter would acquire 70 percent stake in Russian network operator CDN-Video at 30.5 billion rubles ($7.415 million), Russian news agencies reported previously. Subsequent to that, the company officially launched its material assets restructuring plan, announcing the decision to buy 97.82 percent stake in CDNetworks from KDDI at price of 2.11 billion Yen.
According to the announcement, ChinaNetCenter, through the acquisition, can make full use of CDNetworks’ operating system therefore helping saving time for globalizing its business while realizing the consolidation of superior resources. In this way, the company can achieve an effective global content delivery network and accomplish its international layout.
As a global CDN provider, CDNetworks has deployed 180 footprints worldwide, covering 98 cities in 49 counties. Meanwhile, CDNetworks offices are located in the U.S., UK, South Korea, China, Japan, and Singapore. The company has powerful competitive advantage especially in Asian CDN market, which reflects on the NO.1 ranking in Korean CDN market and NO.3 ranking in Japanese CDN market. CDNetworks has set itself apart from other competitors with 16 years of experience in developing CDN technology and offering CDN service. It also has set up the superiority of resources, customers, marketing, development, and brand, in addition to a professional international management team. All these have contributed to CDNetworks’ core competitive advantages. Currently, the company is serving about 1300 enterprise customers, among which Samsung, Hyundai, The Economist, TEXCO, DELL, and eBay are notable ones.
Zhou Liping, ChinaNetCenter’s board secretary, stated that the time is ripe to accelerate overseas acquisition for advancing the internalization of the company. She also believed that CDNetworks will be an excellent assistant in helping ChinaNetCenter succeed in overseas markets.