Majic Wheels, Corp., a Delaware corporation, that is positioning itself as a player in the disruptive industries of fintech and software development by means of acquisitions, announced the closing of the previously announced Bamboo Wellness Holdings Limited acquisition of 26% equity stake at a post money valuation of US$126 Million.
“Since we announced this LOI, Bamboo’s success has been remarkable, and in many ways we are well ahead of our initial expectations.” David Chong, Majic’s CEO said. “We welcome Bamboo to the Majic family and look forward to supporting its expansion with our wide reach of various strategic markets in our global network.”
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Bamboo will continue to be led by Chief Executive Officer Vincent Kwo and its existing senior leadership team. The business will continue to operate as a separate company. “This is an exciting day for Bamboo. Being a part of Majic strengthens our position as a leading insure-tech company, enhances our ability to deliver compelling solutions for our clientele and deepens our access to long-term strategic capital,” said Vincent Kwo, Co-founder and Chief Executive Officer of Bamboo.
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“Our strong results to date were driven by our people and culture. We are thrilled to be working with the Majic team to capitalize on the significant opportunities we see in front of us. In Majic we have a tremendous partner who shares our values, is aligned around our vision, and committed to our success.” Vincent added.
With the definitive documents duly executed, Majic has acquired 26% of the enlarged capital of Bamboo on a fully diluted basis. The transaction valued at US$26m is being funded partly by cash and new shares of Majic, providing a post money valuation of Bamboo at US$126m. Majic also holds an option to exercise a First Right of Refusal to increase the interest of Majic in Bamboo to 51% based upon the same terms.
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