PR Newswire has announced a definitive agreement with Xinhua Finance , under which PR Newswire has acquired Xinhua PR Newswire (XPRN), the first and largest corporate announcement distribution service in China, as well as Xinhua Finance’s corporate announcement businesses in Hong Kong, Singapore and Taiwan.
XPRN was established as a marketing alliance between Xinhua Finance and PR Newswire to bring global best practices of corporate announcement distribution and corporate transparency to China. Under the terms of the original joint marketing agreement, Xinhua Finance was responsible for managing the day-to-day operations of XPRN, while PR Newswire provided the distribution platform, marketing and strategic direction.
The acquisition of XPRN transitions all management and operation of the corporate sponsored announcement distribution service to PR Newswire, including all employees and associated customer relationships, customers and other contracts, office space, and operational processing. All executive and senior management, including John Williams, managing director, and Yujie Chen, director, XPRN – PRC, will remain in their current positions. In conjunction with the acquisition, XPRN will be re-branded as PR Newswire China. PR Newswire will also acquire Xinhua Finance’s corporate announcement business in Hong Kong, Singapore and Taiwan. This business will be re-branded as PR Newswire Asia. The businesses’ executives and senior management will remain in their current positions. In total, the combined operations employ around 50 people.
“Success in China requires a mix of determination, commitment and continued flexibility in adapting to local needs and expectations. PR Newswire China’s knowledge of the China business and media communities will enable it to continue to employ such strategies in order to meet the market’s increasing maturity and demands,” said Williams, who established the business in Beijing in 2002 and quickly expanded across China.
“The strategy behind XPRN was simple and extremely effective — unite Xinhua Finance’s position as premier financial information service with PR Newswire’s expertise and reputation as the global leader in corporate announcement distribution,” said Charles Gregson, chief executive officer of PR Newswire. “In less than six years since its launch, XPRN, now PR Newswire China, has grown to become an essential messaging conduit in China, allowing companies, both public and private, to openly communicate their messages to investors and media in China and around the world. Today’s acquisition offers a significant step forward for PR Newswire China and the companies it serves. Merging with PR Newswire’s global operations will allow us to create opportunities to introduce new communications tools to China’s business community, including broadcast and video services, ProfNet, media monitoring and EDGAR filing, while enhancing the marketing, customer service, and operational efficiencies of the entire business unit.”
As China’s largest corporate announcement distribution service, PR Newswire China provides a gateway for companies to communicate with a network of more than 9,000 journalists representing some 3,000 agencies in China. Further, utilizing PR Newswire’s global distribution network, PR Newswire China also enables companies to connect with tens of thousands of media points in 170 countries in 40 languages, as well as to over one million investors worldwide.
For China-based companies already listed or planning to list on stock exchanges in the United States or elsewhere, PR Newswire China assists companies to ensure full compliance with mandatory disclosure requirements by delivering every announcement to the “disclosure” media designated by NYSE, AMEX, NASDAQ and LSE. As of today, PR Newswire China has captured more than 95 percent of the ADR market in China.
“PR Newswire China’s ability to deliver corporate announcements directly to media, individual and institutional investors, and the general public in China offers companies around the world the ability to establish and reinforce their brands with an audience that is increasingly hungry for Western messaging,” remarked Yujie Chen, director of PR Newswire China. “An important reason for our success over the past six years has been our ability to build direct, one-on-one relationships with thousands of media outlets throughout China. These media relations efforts have been crucial to broadening and deepening the reach of PR Newswire China as a trusted source of corporate announcements. We look forward to working with PR Newswire’s global media relations division to further this success and extend PR Newswire China’s reputation as an essential source of corporate messages in China.”