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ATA Inc. Announces Sale Of ATA Online - Quick Facts

ATA Inc. (ATAI) announced a share purchase agreement with a group of investors with respect to the sale of ATA Online. The Buyer Group includes a group of investors including two entities affiliated with funds managed by CDH Investments, a major Chinese alternative asset management firm based in Beijing; New Beauty Holdings Limited, a company controlled by ATA's CEO Kevin Xiaofeng Ma; and four holding companies controlled by certain management members of ATA Online. The Buyer Group has agreed to acquire all of the outstanding equity interests of ATA Online, which is currently held directly or indirectly by ATA for a total consideration of $200 million in cash.

For the fiscal year ended March 31, 2017, ATA Online contributed approximately 98% of ATA's revenue and nearly 100% of positive bottom line contribution. If the transaction is completed, ATA will no longer conduct its testing development and delivery business currently operated by ATA Online. ATA intends to focus on its assessment content and instrument development businesses in K-12 and higher education areas.

ATA's reporting obligations as a SEC-registered public company will not be affected as a result of the consummation of the transaction. ATA's Board has preliminarily approved to use a portion of the proceeds received from the transaction to pay a cash dividend to the shareholders.

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