- MingZhu Logistics Holdings Ltd (NASDAQ:YGMZ) entered a Share Purchase Agreement to acquire Yinhua (BVI) Limited for $18.3 million.
- Yinhua develops and operates a comprehensive auto-related service platform to serve auto insurance companies.
- MingZhu expects the acquisition to be immediately accretive to its revenue, gross margin, and net income.
- Of the total consideration to be paid, $15.3 million will be paid in the form of ~3.83 million newly issued ordinary shares of MingZhu, representing $4/ordinary share, and $1 million cash upon closing.
- Additionally, a cash earnout of ~$1.99 million will be paid if Yinhua achieves a net income target threshold of $1.3 million during the calendar year 2022.
- MingZhu held cash and cash equivalents of $14.2 million as of June 30, 2021.
- "This is an ideal acquisition for us because in addition to the business being immediately accretive, we see extensive opportunities to leverage the high margin platform," commented Jinlong Yang, CEO of MingZhu.
- Price Action: YGMZ shares are trading lower by 9.37% at $1.45 on the last check Monday.
