KongZhong To Buy Simlife International

KongZhong Corp. (NASDAQ: KONG), a mobile internet firm in China, said it has entered into a definitive agreement to acquire the entire issued share capital of Simlife International, Inc., a Chinese mobile game developer.

Under the deal, KongZhong has agreed to pay $3 million in cash to the shareholders of Simlife. An additional payment of $1.25 million in cash and the issuance of six million of the company's ordinary shares to certain shareholders of Simlife are contingent upon Simlife's performance in the year subsequent to completion of the acquisition.

IDGVC Partners, which owns around 6.7% of the outstanding ordinary shares of the company, also owns around 30% of the issued share capital of Simlife.

Upon the closing of the acquisition, Simlife would become a wholly-owned subsidiary of KongZhong.

Beijing-based KongZhong offers wireless value-added services to consumers in China through technology platforms including WAP, multimedia messaging service, Java, short messaging service, interactive voice response and color ring-back tone.

The company operates three wireless internet sites, which enable users to access media, entertainment and community content directly from their mobile phones. The company also designs and operates mobile games, including mobile online games, Java games and WAP games.

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