CNinsure, an independent insurance agency and brokerage company in China, has signed a definitive agreement to acquire a 60% equity interest in Guangxi Xingfu Insurance Agency.
Under the terms of the agreement, CNinsure will make an initial cash payment within 10 working days after register change with relevant authority and a deferred consideration, to be paid in 2009, which is subject to adjustment based on Xingfu’s financial performance in the calendar year 2008.
The transaction is expected to close in the second quarter of 2008 subject to certain consents, authorizations and other customary closing conditions. Upon completion of the transaction, Xingfu’s management team will continue to lead the company.