USTC will buy MST China for RMB480M (around $78M)

Stcn.com 24 June 2013
Anhui USTC iFLYTEK Co., LTD announced plans to buy 100% shares of MST China and have signed the contract with all 29 shareholders.
MST China is the provider of exam systems, service and data processing. In 2012, its revenue was RMB60M ($9.8M) with a net profit of RMB20.4M ($3.3M). From January to May this year, its revenue was RMB57M ($9.3M) with a net profit RMB12.8M ($2.1M). MST China forecast that net profit after auditing for the coming three years should be more than RMB40M ($6.5M), RMB50M ($8.1M) and RMB60M ($9.8M). If the target in 2013 can not be reached, the original MST China shareholders shall pay performance compensation to USTC. If the three year target is not reached (net profit below RMB150M), USTC will not pay the last equity transaction fee RMB30M.
MST also promised to buy USTC shares under some conditions with the transaction fee it will receive.
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