VanceInfo Announces Acquisition of US-based Wireless Info Tech
September 30 2008 - 11:52PM
PR Newswire (US)
BEIJING, Sept. 30 /Xinhua-PRNewswire/ -- 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. DATASOURCE: VanceInfo Technologies Inc.
CONTACT: Melissa Ning, Director, Investor Relations of VanceInfo
Technologies Inc., +86-10-8282-5330, or
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