Global Sources Ltd. and HC International Inc. announced plans to form what it calls China's largest B2B strategic alliance. HC International is a leading Chinese B2B ecommerce service provider, and Global Sources is a leading global provider of integrated B2B websites, magazines and trade shows. Together, they operate 72 industry-focused websites serving approximately 4 million suppliers and 950,000 buyers from 230 countries worldwide. Annual revenue for the two companies together was approximately US$150 million in 2005.
Global Sources partnered with eBay one year ago. It sells products on eBay and on the Global Sources Direct website, hosted by eBay ProStores. It also works with China suppliers to sell on the domestic China eBay site and works with suppliers to sell through the eBay Resellers marketplace (http://auctionbytes.com/cab/abn/y05/m09/i27/s03).
Global Sources also announced that it is making a strategic investment to acquire 10 percent of HC International's issued shares from IDG Technology Venture Investment, Inc. and has entered into an option agreement allowing it to increase its equity stake in HC International to approximately 35 percent at any time within 12 months of completing the initial transaction. If this option is exercised, Global Sources will be required under Hong Kong regulations to make a general offer for all HC International shares held by the public.
Global Sources Chairman and CEO Merle A. Hinrichs said, "The partnership between HC International and Global Sources transforms the China B2B landscape and enables the launch of many new online verticals, magazines and trade shows for the fastest growing industries in China, the world's fastest growing economy. We have found in HC International the perfect partner to complement our current offerings, especially given HC International's strong vertical search technology. Together, we aim to provide the most comprehensive, professional and successful B2B services in China."
http://www.investor.globalsources.com
