BEIJING, Aug. 23, 2013 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU) ("Baidu"), the leading Chinese language Internet search provider, and Renren Inc. (NYSE: RENN) ("Renren"), a leading real-name social networking Internet platform in China, jointly announced today that Baidu Holdings Limited, a subsidiary of Baidu, and Renren have entered into a definitive agreement (the "Agreement"), pursuant to which Baidu Holdings Limited will acquire a certain number of newly issued ordinary shares of Nuomi Holdings Inc., a wholly-owned subsidiary of Renren, representing approximately 59% of the equity interest in Nuomi, for a purchase price of US$160 million in cash. Subject to the satisfaction or waiver of the closing conditions provided in the Agreement, the parties expect to close this acquisition in the fourth quarter of 2013.(Logo: http://photos.prnewswire.com/prnh/20081103/BAIDULOGO )
Founded by Renren in 2010, Nuomi is a leading provider of group-buying services in China. In the second quarter of 2013, Nuomi generated approximately US$120 million in general merchandise sales and had 3.8 million active paying users. Of the sales transacted on Nuomi during that period, 30% were derived from mobile devices.
"Nuomi's group-buying platform and high-quality local information clearly complement Baidu's existing mobile LBS and maps offering," said Jennifer Li, chief financial officer of Baidu. "Nuomi's broad geographical sales coverage and established consumer base will be instrumental in helping Baidu build out our LBS platform for local merchants."
"We believe the group-buying business has tremendous potential in China and will continue to benefit from the rapid growth of the mobile Internet. Baidu's strategic investment will further enhance Nuomi's position in this sector and we are very excited about the synergies it creates. We look forward to Nuomi's great prospects and the value it will bring to its shareholders," added Joseph Chen, chairman and chief executive officer of Renren.About Baidu, Inc.