Joint Venture Expands Synacor Reach to China
Synacor and Maxit Technology Inc. Form Joint Venture to Provide Next-Gen
Startpages in China
BUFFALO, N.Y., March 12, 2013 (GLOBE NEWSWIRE) -- Synacor Inc. (Nasdaq:SYNC),
the leading provider of next-gen startpages, TV Everywhere solutions and
cloud-based Identity Management (IDM) services across multiple devices for
cable, satellite, telecom and consumer electronics companies, today announced
it has formed a joint venture with Maxit Technology Inc., a leading
intelligent Internet platform company based in Beijing, to expand Synacor
services to China.
The joint venture, part of Synacor's international growth strategy, will be
known as Synacor China Limited, and it will apply for registration in China as
Beijing Xing Mai Technology Limited. Both parties will own 50% of the joint
venture. Under the terms of the agreement, Synacor and Maxit will both license
certain intellectual property, and Synacor will provide capabilities and
resources to the joint venture and an investment commitment of $2 million over
The joint venture will combine Synacor's expertise in next-gen startpages,
email, messaging services, and cross-platform solutions for PCs, tablets and
smartphones with Maxit's expertise in telecommunications, analytics and
experience with China's largest telecom operators. Synacor will leverage the
benefits of its search and display advertising and subscription-based business
model developed in North America and deploy it into the China market.
The CEO of the joint venture will be Dr. Sean Wang. Dr. Wang is the Chairman
and CEO of Maxit Technology Inc., and was previously the CEO of Dragontech
Ventures, a venture capital firm he co-founded in 2000. Wang, who was formerly
on the faculty of the Department of Electrical and Computer Engineering at the
University of Victoria, Canada where he received his Ph.D., also has
experience as an investment banker at China International Capital Corporation
and Nikko Securities. Dr. Wang and Mei Deng, Ph.D., a Maxit board member, will
represent Maxit on the joint venture's board of directors. Synacor will be
represented on the board by the following executives of Synacor: Ron Frankel,
CEO; George Chamoun, Executive VP; and Bill Stuart, CFO.
"In China, where over half a billion consumers are online, we see a great
opportunity for Synacor's cross-platform startpage and portal solutions for
operators and consumer electronics companies," said Wang. "We are committed to
making this joint venture a success and are excited to be working together."
"China represents a significant international growth opportunity to expand the
reach of our products and services," said Ron Frankel, Synacor CEO. "Synacor
is honored to enter into this joint venture with Maxit and we are excited and
confident about Sean's commitment and ability to achieve success."
The joint venture's ability to operate in China is subject to customary
regulatory conditions, including registration as a wholly foreign-owned
enterprise (WFOE) in China. Synacor and Maxit expect to complete registration
of the WFOE in the second quarter of 2013.
For more information on Synacor's services please visit synacor.com or email
Synacor's white-label platform enables cable, satellite, telecom and consumer
electronics companies to deliver TV Everywhere, digital entertainment,
cloud-based services and apps to their end-consumers across multiple devices,
strengthening those relationships while monetizing the engagement. Synacor
(Nasdaq:SYNC) is headquartered in Buffalo, NY. For more information, visit
Integrate. Authenticate. Engage.
The Synacor logo is available at
About Maxit Technology Inc.
Maxit develops intelligent Internet platforms based on user analytics and big
data technology, with applications in personalized information presentation
and advertising, online marketing and audience research, and more. For more
information, visit http://www.maxit-tech.com.cn/.
This release includes certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements
regarding the benefits of the joint venture and its plans, objectives,
expectations and intentions with respect to future operations, products and
services. These statements are based on the current expectations or beliefs of
management of Synacor, and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from those expressed or
implied by the statements herein due to changes in economic, business,
competitive, technological and/or regulatory factors, and other factors
affecting the operation of the respective businesses of Synacor, including (i)
the joint venture not being able to obtain the approvals required from the PRC
government for its establishment; (ii) increasing competition in the industry
and the joint venture's ability to compete in the Chinese market; (iii) the
impact of regulatory changes in the industry; (iv) potential difficulties
associated with operating the joint venture; (v) the joint venture's ability
to obtain additional financing; (vi) the joint venture's ability to offer
competitive products and services in the Chinese market at a favorable margin;
(vii) general business and economic conditions, including seasonality of the
industry and growth trends in the industry; (viii) Synacor's ability to
successfully enter the Chinese market and operate internationally; (ix)
potential delays, including obtaining permits, licenses and other governmental
approvals; (x) trade barriers and potential duties; and (xi) Synacor's and the
joint venture's ability to protect intellectual property. More detailed
information about these factors may be found in filings by Synacor, as
applicable, with the Securities and Exchange Commission, including its most
recently filed Quarterly Report on Form 10-Q. Synacor is under no obligation
to, and expressly disclaims any such obligation to, update or alter the
forward-looking statements, whether as a result of new information, future
events, or otherwise.
CONTACT: Investor Contact:
Denise Garcia, SVP
Meredith Roth, VP, Corporate Communications
Press spacebar to pause and continue. Press esc to stop.