Hong Kong-based Gome FinTech marks diversification by acquiring Chinese game developer CashBox for US$25.6 million
- Gome Fintech’s core businesses include commercial factoring, financial leasing, real estate mortgage loans, and money lending business in the Hong Kong region.
- The acquisition will help more than treble Gome Fintech’s revenue to 309.5 million yuan (US$42.8) from 82.2 million yuan at the end of 2023
Hong Kong-based financial service platform Gome Finance Technology (Gome Fintech) has unveiled plans to acquire Chinese game developer and publisher CashBox Group Technology for HK$200 million (US$25.6 million) as part of a strategic diversification.
Gome Fintech’s core businesses include commercial factoring, financial leasing, real estate mortgage loans, and money lending business in the Hong Kong region and the acquisition will mark its entry into the business of artificial intelligence generated content (AIGC).
The gaming sector has become an important part of the financial services market with huge growth potential and business opportunities, according to a filing by Gome Fintech. “The new technology of AIGC is becoming an important technological turning point, bringing revolutionary changes to the game development process, and AIGC game stocks are seen as having huge potential investment value.
The proposed acquisition of CashBox will be financed by the issuance of new shares by Hong Kong-listed Gome Fintech, and the financial services platform aims to complete the acquisition by the end of the month, said Baron Song, executive director and chief financial officer of Gome Fintech, at a media briefing on Wednesday afternoon.
“The acquisition of CashBox is the first step in Gome Fintech’s strategic transition and in preparation for globalisation,” said Song.
