ATA Announces its Subsidiary Entered Into a Strategic Investment Agreement with MOOC-CN Investment
BEIJING, Feb. 23, 2017 (GLOBE NEWSWIRE) -- ATA Inc. ("ATA" or the "Company") (Nasdaq:ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced that the Company’s assessment business subsidiary, ATA Learning Data & Technology (Beijing) Limited (“ATA Learning Data & Technology”), had entered into an Investment Agreement (“Agreement”) with MOOC-CN Investment.
Pursuant to the Agreement, MOOC-CN Investment, together with the founder of MOOC-CN Investment as strategic investors, will invest RMB34.0 million (approximately US$4.9 million at current foreign exchange rate) into ATA Learning Data & Technology, which accounts for 20% of ATA Learning Data & Technology’s total shareholdings upon the closing of the investment, of which MOOC-CN Investment and its founder will each hold 18% and 2%, respectively. Upon the closing of the investment, ATA will own 56% of the shareholdings of ATA Learning Data & Technology, and the remaining 24% has been reserved as employee option pool for future incentive issuance to ATA Learning Data & Technology’s employees, directors, officers and consultants. The Company intends to use the proceeds from this strategic investment for, and work together with the strategic investors to continue to focus on, the development of education assessment instruments and contents.
ATA continues to explore growth opportunities in the K-12 education assessment market by leveraging the Company’s core competencies in psychometric expertise and testing technologies.
Mr. Kevin Ma, ATA’s Chairman and Chief Executive Officer, stated, “We are pleased and welcome MOOC-CN Investment as our strategic partner for ATA Learning Data & Technology. It reflects the recognition of our dedication and technological edge in the education assessment sector. We are confident that partnering with MOOC-CN Investment and leveraging its resources and influence will greatly accelerate the expansion of ATA Learning Data & Technology into public schools across China in the future. We strongly believe that this strategic investment can fulfill ATA Learning Data & Technology’s business development and brand building needs at this stage.”
About MOOC-CN Investment
MOOC-CN Investment is a venture capital fund initiated by MOOC-CN education focusing on the online education sector, with Tsinghua Holding and MOOC-CN Education as its anchor investors. Among its limited partners are numerous companies and funds with extensive experiences and resources in the education industry. MOOC-CN Investment is committed to leverage the power of capital, and maximizing the advantages of these resources, so as to nurture the rapid growth of the invested companies and build an eco-system for online education.
About ATA Learning Data & Technology (Beijing) Limited
ATA Learning Data & Technology (Beijing) Limited is a leading professional third-party education assessment company providing formative and diagnostic assessment services for primary schools, secondary schools and Education Commissions at all levels, and a service provider of enrollment selection services for colleges and universities. ATA Learning Data & Technology (Beijing) Limited was formerly known as Beijing Jindixin Software Technology Limited, which was acquired by the Company in February 2009. In April 2016, the Company restructured Beijing Jindixin Software Technology Limited and changed its company name to ATA Learning Data & Technology (Beijing) Limited.
About ATA Inc.
ATA is a leading provider of advanced testing technologies in China. The Company offers comprehensive services for the creation and delivery of assessments based on its proprietary testing technologies and test delivery platform. ATA’s testing technologies are used for professional licensure and certification tests in various industries, including information technology services, banking, teaching, asset management, insurance, and accounting. As of September 30, 2016, ATA's test center network comprised 3,154 authorized test centers located throughout China. The Company believes that it has the largest test center network of any commercial testing service provider in China.
ATA has delivered more than 80.7 million billable tests since ATA started operations in 1999. For more information, please visit ATA’s website at www.atai.net.cn.
Cautionary Note Regarding Forward-looking Statements
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terms such as "believe," "expect," "future," "will," and similar terms. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates, and projections about both ATA and ATA Learning Data & Technology as well as the markets in which they operate. The Company undertakes no obligation to update forward-looking statements, except as may be required by law. The Company cannot assure you that its expectations and assumptions will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
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Released February 23, 2017