Youxin Technology to acquire 51% stake in Salesforce partner Celnet

GUANGZHOU - Youxin Technology Ltd (NASDAQ:YAAS), whose stock has seen a notable 21% gain over the past week according to InvestingPro data, announced Tuesday it has entered into a definitive agreement to acquire a 51% equity stake in Celnet Technology Co., Ltd., China’s largest Salesforce.com partner.

According to the agreement signed Monday, Youxin will pay RMB 5,236,680 (approximately $736,461) in cash for the stake, plus additional equity and cash incentives tied to performance targets. The company maintains a strong liquidity position, with InvestingPro analysis showing a current ratio of 2.53, indicating sufficient assets to cover short-term obligations.

Celnet, founded in Beijing in 2012, specializes in information integration and management solutions for businesses. The company has completed over 580 projects for more than 350 enterprise clients, including Ayrton SAS and Ant International.

Youxin Technology, a provider of SaaS and PaaS solutions for retail enterprises, views the acquisition as a strategic move to expand its enterprise SaaS capabilities and accelerate growth in customer relationship management services.

"The acquisition of Celnet marks a significant step forward in scaling our business and accelerating our growth trajectory," said Shaozhang Lin, Chief Executive Officer of Youxin Technology, in a press release statement.

Celnet brings expertise in embedding AI into enterprise CRM solutions, with 90% of its team holding Salesforce certifications. The company focuses on AI-driven task automation and multi-domain collaboration within CRM systems.

The transaction represents Youxin’s effort to strengthen its position in China’s digital transformation market by combining its retail-focused platforms with Celnet’s enterprise CRM capabilities.

Youxin Technology provides cloud-based solutions that help retail enterprises digitally transform their businesses without requiring complex IT infrastructure investments.

In other recent news, Youxin Technology Ltd announced the closing of a public offering, raising approximately $6 million in gross proceeds. This offering included 21,428,571 Common Units priced at $0.28 each, with each unit containing one ordinary share and warrants. The company also held an extraordinary general meeting where shareholders approved share consolidation and other amendments. Additionally, Youxin Technology received compliance notices from Nasdaq for failing to meet listing requirements, specifically the minimum bid price and market value of listed securities. Despite these challenges, the company continues to navigate its financial and operational landscape. The recent public offering was priced at $0.28 per unit, and it significantly diluted existing shareholders. These developments come amidst ongoing efforts to align with market and regulatory standards.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.