Event
The company intends to issue shares and pay cash in this transaction Rongzhi intends to purchase 100.00% equity of Zanrong Electronics by the combination of issuing shares and paying cash, the transaction amount is 840 million yuan, and the supporting funds raised at the same time do not exceed 514 million yuan.
Brief comment
Zanrong Electronics Advanced Storage solution provider
Zanrong Electronics is mainly engaged in providing storage system integration solutions. By continuously tracking the world's leading storage products and application technologies, including EMC enterprise storage systems and software; Oracle automatic tape library products, virtual storage management systems and related software; NetApp network storage systems; Symantec data storage management software, and combined with the current situation and needs of domestic users, to provide customers with appropriate solutions. The company promises that the profit from 2017 to 2019 will not be less than 7000 yuan, 8000 yuan and 90 million yuan respectively.
Zanrong Electronics and the company fully complement each other in business and products.
The main business of Rongzhilian is to promote the information process of enterprise customers, and the main products include solutions such as computing, storage and data security, network and information security, virtualization and green computer room. Zanrong Electronics mainly provides storage system integration solutions for domestic financial industry users, and its main products include various kinds of network storage systems and data storage management software.
After the integration of the two sides, more innovative businesses will be formed, and the competitiveness of Rongzhilian in storage will be further enhanced.
The market synergy effect is obvious.
Rongzhilian's customers are mainly distributed in telecommunications, government, manufacturing, finance, energy, biology and other fields. Zanrong's main customers are bank customers such as China Merchants Bank and Ping an Bank. The fields covered by the two companies are highly complementary. The merger and acquisition will help both companies to achieve cross-selling of products in different industries and different regional markets, expand the scale and influence of products and solutions, and increase customer stickiness. Rongzhilian sales system is distributed in major provinces, autonomous regions and municipalities directly under the Central Government, and has established a three-level service system of Beijing headquarters, regional centers, regional offices or customer sites. Zanrong Electronics can rely on Rongzhilian to infiltrate in new regions and industries, expand the scope of business.
We are optimistic about the company's acquisition of Zanrong Electronics and believe that this acquisition will add new vitality and significant synergy to the traditional business of Rong Zhonlian. In addition, we are optimistic about the future development of Rongzhilian gene sequencing and vehicle networking business, and suggest that we should focus on it.
