ResMed completed acquisition of CMT, one of CID Fund II's portfolio companies

Oct 27, 2015

The CID Group (“CID”) is pleased to announce the completed acquisition of one of CID Greater China Venture Capital Fund II, L.P’s (“Fund”) portfolio companies, Curative Medical Technology. (“CMT or “the Company”) by ResMed Inc. (“ResMed”) (NYSE:RMD), a global leading provider of non-invasive ventilation and sleep-disordered breathing medical devices and accessories. As part of the merger transaction, CMT’s vascular catheter business is spin off from CMT and remain as Fund’s another portfolio company.

Founded in 2008, Curative Medical is a leading China based innovator, designer, and manufacturer of medical devices for sleep-disordered breathing and chronic obstructive pulmonary disease, and has leveraged its expertise in China to drive its growth in other global markets. The Company has established its worldwide distribution channels in about 30 countries and regions such as US, Germany and Japan, etc. In China, CMT has become the leader in noninvasive ventilator and sleep markets.

On completion of the transaction, Curative will retain its operational independence and continue to invest in R&D, manufacturing, marketing and sales teams in China and as well maintain its name, brands and products tailored for the Chinese and other global markets. Leveraged on Curative’s strong clinical, innovation and market reputation in China, this partnership will position both ResMed and Curative as market leader in sleep-disordered breathing and respiratory care in China while improving patient qualify of life and reducing total healthcare system costs in China. Financial terms of the transaction were not disclosed. The deal is subject to customary closing conditions and is expected to close before the end of calendar year 2015.

Since the investment in 2008, The CID Group has been working closely with CMT in strengthening Company’s management team and establishing its strategic partnership. CID has invested US$6 million in CMT, representing 23% ownership of the Company. Based on the acquiring price of the agreement, the investment achieved approximately 6.0x multiple and 30% IRR.

For more than 16 years, CID has been focused on venture investments and industry integration opportunities in the Greater China market. CID has invested in 184 companies and achieved 92 exits.

Stock price of NPC, one of Fund III's portfolio companies, surged more than 50% above the listing price on the first day of listing

Jun 26, 2015

The CID Group (“CID”) is pleased to announce the successful listing of Net Publishing Co. (“NPC” or “the Company”), one of CID Greater China Venture Capital Fund III, L.P.’s portfolio companies, on the Emerging Board of Taipei Exchange (Stock Code: 6542 TT) on June 25th, 2015. On the first day of trading, the Company’s stock price surged more than 50% above its listing price of NTD91 and closed at NTD139.95. The closing market cap reached NT3.08 billion (US$99 million).

Founded in 2012, Net Publishing specialized in cross-platform publishing and co-operation of mobile, social and web games in the Greater China market. It is one of the largest game publishers in the region which has published more than 50 games within three years and accumulated over 3.7 millions registered users in Taiwan, Hong Kong, Macau, Korea, Singapore, Malaysia, Thailand and Vietnam. The Company posted revenues of US$19.8 million for the first five months of 2015, marking 510.45% growth compared to the same period last year.

CID is NPC’s largest institutional investor. Since the investment in 2013, CID has been actively supporting the development of NPC’s business, specifically, assisting the Company in mergers and acquisitions to accelerate its business expansion. In 2014, the Company’s revenue increased fourfold from US$6.5M to US$27.1M and market cap boosted from US$16.6million to US$41million. CID is proud to work hand in hand with NPC to achieve this remarkable milestone.

CID invested US$15M in NPC, representing 40% ownership of the Company. Based on the closing price on June 25th, 2015, the investment achieved approximately 2.6x multiples and 114% IRR. For more than 16 years, CID has been focused on venture investments and industry integration opportunities in the Greater China market. CID has invested in 182 companies and achieved 89 exits.

The CID Group Closes CID Greater China Fund V at US$ 150M, with 50% GP commitment

May 15, 2015

The CID Group (“CID” or “The Firm”) today announced the close of CID Greater China Fund V (“Fund” or “CID IV”), a US$150M fund primarily focuses on the proprietary investment and industry integration opportunities in China and Taiwan. The Fund received strong backing from repeat investors of previous funds, including sovereign investment funds, endowments, financial institutions and family trusts, and completed the fundraising in only 4 months.

Steven Chang, co-founder and Managing Partner of The CID Group, said, “We are grateful for the support from our long-time Limited Partners, who share our belief that Greater China offers significant investment opportunities in attractive companies undergoing industry integration and enterprise transformation.”

The Fund is a successor fund to the US$100M CID Greater China Fund IV which was raised in 2013. The Fund will invest mainly in Internet/Mobile Internet, healthcare, consumer and TMT sectors, from early stage to late state/buyout. Following same successful mechanism in Fund IV, The CID Group and its investment team have committed 50% of the Fund alongside with the Limited Partners, reflecting strong commitments into the new Fund.

“Our strong industry network and deep operating knowledge create a powerful platform for the portfolio companies to find the resources needed to reach the next level of growth and profitability,” Steven Chang added. The Fund will continue to adopt CID’s unique investment model in creating proprietary deals and assisting companies to accelerate the growth through hands-on value creation.

CID is one of the most active venture capital and private equity firms in the Cross-Strait market. The Firm focuses on tracking global industry integration trends, identifying first-mover opportunities and pursuing value-creating transformation. In 2007, CID took private a Taiwan based ERP software company and later in 2014 listed the company on China’s A-share market. In 2013, the Firm assisted a China based IC design house to list on Taiwan Stock Exchange. In the same year, CID closed two listed companies buyout in healthcare and IC design sectors in Taiwan. Since 1998, The Firm has invested in 181 companies and delivered 88 exits (48 IPOs and 40 M&A/trade sales), achieving more than 3x cash returns to the Limited Partners.