On December 26, BaiJiaYun announced that its merger and listing transaction with plastic film maker Fuwei Films (Holdings) Co., Ltd. was officially completed. BaiJiaYun officially listed on the Nasdaq with the stock symbol of “RTC”, becoming the first Chinese company in the audio and video SaaS field to debut in the US.
According to the merger agreement between Fuwei Film and BaiJiaYun on July 18, a new board of directors and management team is to be established. Li Gangjiang, founder of BaiJiaYun, was appointed as chairman of the board of directors, CEO and chairman of the remuneration committee, and Yan Lei, CEO and chairman of Fuwei Film, was appointed director of the company.
As of December 23, Fuwei Film’s stock price was $8.3 per share, which is 76% higher than the $4.72 on July 17 before the merger plan was announced. According to the number of additional shares issued by the company in the proxy statement submitted on August 23 and the current share price, the market value of the merged company is expected to reach $840 million.
BaiJiaYun, established in 2017, is a video-centric technology solution provider with core expertise in SaaS/PaaS solutions. The company offers a wealth of video-centric technology solutions including video SaaS/PaaS, video cloud and software, video AI and system solutions. It is committed to delivering reliable, high-quality video experiences across devices and localities.
The services provided by the company are mainly used in education, enterprise training, marketing, exhibition, recruitment, annual meetings and other scenarios. Its shareholders include VMCapital, Fortune Capital, GP Capital, Huatu Education, Gaorong Capital and others.
According to a previously disclosed proxy statement, the revenue of BaiJiaYun in fiscal year 2020 was $23.37 million while revenue in fiscal year 2021 was $41.45 million, a growth rate of nearly 80%. In the past two fiscal years, the net profit margin of BaiJiaYun has reached about 10%. Its customers include BMW, Hisense Group, Industrial and Commercial Bank of China, Apple and others. At present, the company has established an extensive service foundation in China. In more than ten regions such as Beijing, Shanghai, Shenzhen and Nanjing, its R&D centers and offices have been established.
In response to the listing, Ma Yi, president of BaiJiaYun, said, “Facing the rapid development of a digital economy in which cloud offices, shopping and live-streaming have become normal, the space of education, finance and medical care has not been fully explored. Listing on the Nasdaq is one of the results of BaiJiaYun’s five-year effort.”
As the epidemic accelerates users’ habits of dealing with things through online channels, audio and video services have been heating up. At present, in addition to BaiJiaYun, Agora and Polyv, Internet giants such as ByteDance, Alibaba and Tencent have entered the market over the last two years.