BEIJING, Aug. 11 /Xinhua-PRNewswire/ -- VanceInfo Technologies Inc. (NYSE: VIT), an IT service provider and one of the leading offshore software development companies in China, today announced that, through one of its subsidiaries, it has recently entered into an agreement to purchase a 33% stake in Link Result Limited ("Link Result"), a provider of IT outsourcing services in China.
Link Result, through its operating subsidiary, A-IT Software Services Co., Ltd. (Shanghai) (AIT), provides information technology outsourcing services primarily to multinational financial institutions in China. As of July 31, 2008, it had a team of 77 employees who have extensive experience in IT services for the financial sector. In the first half of 2008, AIT generated approximately RMB 9.1 million, or US$1.3 million, in net revenues.
In connection with the transaction, VanceInfo will pay $0.33 million in cash to the current shareholder for a 33% stake in Link Result and lend US$0.5 million to Link Result for its working capital needs. VanceInfo will have the right to acquire the remaining 67% in the next 18 months at its sole discretion. The total purchase price for the remaining 67% will depend on Link Result’s financial performance as defined in the shareholders’ agreement.
Mr. Chris Chen, Chief Executive Officer of VanceInfo Technologies, commented, "We are delighted to enter into this strategic alliance with Link Result. It demonstrates our commitment to investing and expanding our capabilities in the financial services vertical. The AIT team has many years of experience in the financial services domain. Leveraging VanceInfo’s broader platform and brand recognition, we believe the joint venture is well positioned to capture a larger share in this rapidly growing vertical market."
The transaction is expected to close in the third quarter of 2008.
About VanceInfo
VanceInfo Technologies Inc. is an IT service provider and one of the leading offshore software development companies in China. VanceInfo was the first China software development outsourcer listed on the New York Stock Exchange.
The Company ranked number one among Chinese offshore software development service providers for the North American and European markets as measured by 2007 revenues, according to International Data Corporation, or IDC, a leading independent market research firm.
VanceInfo’s comprehensive range of IT services includes research & development services, enterprise solutions, application development & maintenance, quality assurance & testing, and globalization & localization. VanceInfo provides these services primarily to corporations headquartered in the United States, Europe, Japan, and China, targeting high growth industries such as technology, telecommunications, financial services, manufacturing, retail and distribution.
Safe Harbor
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, should, expects, anticipates, future, intends, plans, believes, estimates, and similar statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Further information regarding these and other risks is included in VanceInfo’s filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. All information provided in this press release and in the attachments is as of August 11, 2008, and VanceInfo does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
