September 25th, the industry has long been the acquisition of the final dust settled. Suning.com’s parent company Suning Limited by Share Ltd with $66 million acquisition of red child company, to undertake the "red children" and "bean purchase" two big brands and the company’s assets, business.
as a traditional retail business, Suning Appliance involved in the electricity supplier is relatively late, until the beginning of 2010 began to force. Suning is also the first time in the field of mergers and acquisitions. Suning.com executive vice president Li Bin said that this marks the electricity supplier industry from the capital driven towards industrial integration.
as a vertical retail platform provider, red child $66 million sale price, and venture financing scale far. In 2005, the red child won the first round of $2 million 500 thousand investment, the investor is the northern lights and NEA. In 2006, the northern lights and NEA additional rounds of investment of $3 million. In 2007, the red child into the $25 million third round of financing, by the new shareholders Kleiner Perkins (KPCB) investment. After that, the three VC carried out several rounds of additional investment. It is estimated that before the merger, the total investment of $120 million to get a red child.
In contrast, the purchase price and the red child $66 million
over financing industry said that the electricity supplier bubble disillusionment, many investment institutions almost lose everything.
contrast, we might as well look back on the development path of the red child. Red child vice president Liu Ying has revealed the red child in 2011 sales of 1 billion 500 million yuan, but after the red child CEO Xu Peixin also revealed that red child in 2010 sales of 1 billion 500 million yuan, compared to $2 billion in 2009. Corresponding with the red child three years of zero growth, where the Jingdong store, three years is the growth rate of more than 100%. Electricity supplier practitioners Lu Zhenwang believes that the red child is the source of today’s marriage is the root cause of others – the red child creation team, in addition to the current outside of Xu Peixin, have left.
about the merger, Su Ning, vice chairman Sun Weimin said, suning.com began to expand the category this year, through the acquisition of vertical class electricity supplier can quickly meet the SKU expansion. Red child has a mother and child, cosmetics category of professional management and leadership, with a strong supply chain, operating capacity, and has a female dominated, high activity of the customer base. I believe this is a "1+1> 2" mergers and acquisitions.
and Suning optimistic judgment different industry believes that "even if the price is cheap, but also enterprises should not be considered a hard to turn the table of the company, and the company is an important asset of talent, business flow and user, the red child team creation after several unrest, no longer. In the obvious disadvantage of similar enterprises and enterprise competition". The deal is not worthwhile.
of the takeover is cost-effective, believe that the seller is "run", and how the effects of mergers and acquisitions, but also youdaishiri. We might as well jump out of the dispute and re-examine the merger