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Letter of Intent in Relation to a Potential Acquisition

2015-05-12 21:00 1376

TAIPEI, May 12, 2015 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) (the "Company") today announced that, on May 8, 2015, the Company has entered into a non-binding letter of intent (the "Letter of Intent") with an independent third party in relation to the Company's potential acquisition of a controlling interest in a global cosmetics e-commerce company (the "Target") (the " Potential Acquisition").

Information on the Target

The Target is an established online distribution and retail platform of beauty products, with its own website and 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. The Target 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. The Target has an annual net turnover of over US$ 200 million.

Major Reasons for the Potential Acquisition

Diversification of the Company's existing business and exposure to the fast growing cosmetics e-commerce market. As the Target is an established and proven e-commerce platform with existing customer base, the Company is of the view that the Potential Acquisition would help diversify the Company's overall business risks and broaden the Company's business portfolio in the Internet and technology sector, and allow the Company to tap into the fast growing beauty and cosmetics e-commerce market.

Potential synergies with the Target. The Company sees potential significant synergies with the Target from leveraging the Company's expertise in information technology, online and offline marketing, as well as its local connections in various Asian countries.

The Letter of Intent does not constitute any legally binding obligations on the parties in relation to the Potential Acquisition. The Potential Acquisition is subject to satisfactory due diligence by the Company, negotiation of the definitive binding agreements, obtaining of all the necessary corporate and regulatory approvals and waivers.

About GigaMedia

Headquartered in Taipei, Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is a diversified provider of online games and cloud computing services. GigaMedia's online games business is an innovative leader in Asia with growing game development, distribution and operation capabilities, as well as platform services for games; focus is on mobile games and social casino games. The company's cloud computing business is focused on providing enterprises in Greater China with critical communications services and IT solutions that increase flexibility, efficiency and competitiveness. More information on GigaMedia can be obtained from http://www.gigamedia.com/.

The statements included above and elsewhere in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. GigaMedia cautions readers that forward-looking statements are based on the company's current expectations and involve a number of risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements. Information as to certain factors that could cause actual results to vary can be found in GigaMedia's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission in April 2014.

For further information contact:
Amanda Chang
Investor Relations Department
Country/City Code 8862 Tel: 2656-8080
amanda.chang@gigamedia.com.tw

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/letter-of-intent-in-relation-to-a-potential-acquisition-300081745.html

Source: GigaMedia Limited
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