VanceInfo Technologies Inc. (NYSE: VIT) (“VanceInfo”), an IT services provider and one of the leading
offshore software development companies in China, today announced that,
through its U.S. subsidiary, it has entered into a definitive agreement to
acquire Wireless Info Tech Ltd. (“WIT”), a mobile testing and application
development services provider based in San Diego, California. The
acquisition marks the first strategic move in the U.S. by VanceInfo to
expand its onshore delivery capabilities and enhance its business
development forefront. It will also bolster VanceInfo’s position in
outsourcing services for the fast growing mobile sector.
Under the terms of the agreement, VanceInfo will pay an initial
consideration of US$1.08 million in cash and grant certain restricted
stock. Contingent considerations will be paid based on WIT’s financial
performance in the next 24 to 30 months.
Headquartered in San Diego, California, WIT specializes in mobile
testing and application development services primarily for handset
manufacturers. For the eight months ended August 31, 2008, WIT generated
approximately US$3 million in net revenues. The acquisition will complement
VanceInfo’s existing offshore services to the mobile sector and strengthen
its dual shore service platform for its multinational clients. The
transaction is expected to close in October and is expected to be accretive
to VanceInfo’s full year results.
“We are excited to welcome this highly skilled team into the VanceInfo
family as we continue to carry out our investment strategy in the wireless
sector,” said Chris Chen, Chairman and Chief Executive Officer of
VanceInfo. “The combination of our offshore capabilities and WIT’s onshore
engagement team will help us better serve our clients’ needs. Leveraging
the brand and platform of VanceInfo, the WIT team will also be better
equipped for developing more customers and winning larger projects in the
U.S.”
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
October 1, 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.
BEIJING, Sept. 30 /Xinhua-PRNewswire/ –
