ASX-listed internet venture investment and development firm Fatfish Internet Group have entered into a strategic and financial alliance with Zurich-based tech-company builder Mountain Partners AG, the companies announced Thursday.
As part of the partnership, Mountain Partners will acquire 100 per cent of a special purpose vehicle (SPV) comprising Fatfish’s selected assets for $9.2 million. The companies have not disclosed the ‘selected assets’, but said that the acquisition will be paid by Mountain’s shares and cash.
So far, the statement cited that they have entered into a non-binding term sheet, which is subject to a detailed and satisfactory due diligence process over the next months, and closing is expected in the fourth quarter of this year.
Then, they will form a joint venture (JV) firm, which will be branded as Mountain Asia, to manage Mountain investment and company building hubs in Southeast Asia.
Mountain Partners will hold 51 per cent in Mountain Asia, while Fatfish and Mountain Asia management team will own the remaining, Kin-Wai Lau, CEO and director of Fatfish Internet Group, told DEALSTREETASIA via email. Fatfish will also hold the shares in Mountain Partners, but the shareholding proportion remains a secret.
Once the deal is completed, Fatfish will become a key strategic partner of Mountain in Southeast Asia. Fatfish and Fatfish leaders will also be spearheading the operation of the JV.
“After the JV is formed, we will continue the investment and also build on the existing portfolio, expected to help launch three to four companies per year,” he said in the email.
Apart from the selected assets to be sold to SPV, Fatfish will continue to hold certain of its investments directly, including Fatfish’s interest in ASX-listed iCandy Interactive Ltd, Fintech Asia Group and other investments.
With headquarters in Singapore and Australia, Fatfish helps entrepreneurs build and grow internet businesses via a co-entrepreneurship model, including seeking an active involvement from its investee companies from seed funding through to exit.
Earlier this month, Fatfish has exited the digital staffing company Nvoi Limited via a reverse-takeover of Orrex Resources Limited.
To date, Mountain Partners and its founders have created more than 11,000 jobs in 22 countries through financing and building more than 200 technology and internet companies. Notable companies are buyVIP (acquired by Amazon), Lieferando (acquired by Takeaway.com) and Secusmart (acquired by Blackberry).