BEIJING and DALLAS, July 15, 2013 /PRNewswire/ -- NQ Mobile Inc. (NYSE: NQ) (NQ Mobile), a leading global provider of mobile Internet services, today provides its preliminary second quarter 2013 revenue guidance. The company now estimates that its overall revenues for the second quarter 2013 will exceed $40 million. The company will provide final second quarter 2013 results during its regularly scheduled earnings conference in mid-August.
Also, the company announces that it has entered into a share purchase agreement to acquire the remaining 45 percent stake in its subsidiary, Beijing NationSky Network Technology, Inc. (NationSky), and fully consolidate the two businesses. This transaction is expected to be accretive to earnings in the third quarter 2013 as both the revenue growth and profitability trends of NationSky are exceeding the company's original targets.
The total cash and stock consideration for the NationSky purchase is valued at $25.2 million. The consideration includes $11 million in cash and $14.2 million in the company's Class A common shares. There will be additional performance-based consideration provided that certain profitability targets are met over the next 18 months."Our businesses are performing extremely well. With our updated second quarter 2013 revenue outlook, it is clear that our strategy to monetize our growing user base is taking hold. Our excitement is only increasing as we look towards the future of our business," said Co-CEO, Omar Khan. "The purchase of the remaining 45 percent of NationSky is also an exciting development. NationSky is well positioned to leverage the explosive global growth in enterprise mobility solutions. The bring-your-own-device (BYOD) trends within the enterprise are blending the individual consumer's desires with the demands of the enterprise environment. By fully integrating our business with that of NationSky, NQ Mobile is uniquely positioned as a global mobility solutions and services provider." "Mobility trends are changing the way enterprises work. NationSky has successfully positioned itself in targeting the enterprise mobility market. The NationSky business has exceeded our expectations since we purchased a controlling 55 percent in NationSky in early 2012," said the Co-Founder and Co-CEO of NQ Mobile, Dr. Henry Lin. "We are excited to be in a position to fully consolidate NationSky's businesses and better reap the rewards of NationSky's rapidly advancing enterprise mobility business. We believe that our shareholders will benefit from the financial and strategic value of this deal." NationSky currently has more than 1,250 large enterprise customers including banks, brokers, insurance and healthcare companies. Many of these companies are Fortune 500 companies. NationSky has become a tier-1 partner of Apple and Lenovo products and solutions to enterprise customers. "I am excited to complete the integration with NQ Mobile," said the CEO of NationSky, Charlie Hou. "NQ Mobile provides industry-leading products and services which, when combined with NationSky's enterprise customer base, will drive our leadership in enterprise mobility in China." The company will host a conference call today at 5:00 p.m. EDT to further discuss the details of this transaction and the related financial and strategic implications. The dial-in information for the call is set forth below. Additionally, a presentation for the conference call is located under the Investors Relations section of the Company's website at ir.nq.com. The dial-in details for the conference call are: