Credit: Miao Code
Miao Code, a coding bootcamp for kids, today announced to be acquired by 37 Interactive Entertainment (002555.SZ), a listed game developer, and both have already reached a strategic cooperation agreement. The deal is expected to close soon with financial terms undisclosed.
The Beijing News reported the Shanghai-based online coding bootcamp suspended online courses in last November. Guan Chunhua, founder of the company, responded to JMdedu that a publicly-traded company has agreed to acquire Miao Code.
On December 30, 2019, existing investors except Guan Chunhua and Tibet Taifu Culture Media Co., Ltd., a wholly-owned subsidiary of the buyer, have all withdrawn, and meanwhile Yang Jun, senior vice president of the buyer, joined the board of directors, according to Tianyancha.
The two-year-old company finally decided to get through the cold winter by relying on a listed company. JMDedu’s data shows fields such as K-12, early childhood education and language training have seen sudden shutdown of tutoring platforms, which include local brick-and-mortar teaching centers, large companies, along with franchisees.
Founded in 2017, Miao Code focuses on providing online coding training services for kids aged 7-14, and has raised around 100 million yuan through three rounds of funding.
The buyer 37 Interactive Entertainment participated in Miao Code's Series A round in 2018. In its semi-annual report, which covers six months ended June 30, 2019, it reported 6.071 billion yuan in revenue, a 83.83% increase over the same period last year. Its net profit was 1.291 billion yuan, marking a 40.43% year-over-year rise, which it mainly attributed to 152.90% boost in mobile game business in the first half of 2019.
The company is currently on the way to expand footprints in other areas like education, with Miao Code and digital library KaDa Story in its investment portfolio.
The earnings report also mentioned that it is seeking to expand into smaller fast-growing branches of cultural and creative industries. "We believe coding skills will be a necessity similar to English learning," said the company.
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