BEIJING, April 12, 2011 /PRNewswire-Asia/ -- VanceInfo
Technologies Inc. (NYSE: VIT) ("VanceInfo" or the "Company"), an IT
service provider and one of the leading offshore software
development companies in China,
today announced that it has acquired 100% equity interest in the
main operating subsidiaries of LW International Holdings Limited
("Lifewood"), a China-based
company providing business process outsourcing ("BPO") services.
Under the terms of the acquisition agreement, VanceInfo will pay an
initial consideration of $5.6 million
in cash and stock, with contingent consideration to be paid based
on Lifewood's financial performance over the next three years.
Established in 2004, Lifewood provides primarily data processing
services to clients in the United
States, Europe and
Asia Pacific. Its key industry
verticals include publishing, healthcare and financial services.
The acquisition marks VanceInfo's strategic expansion into the BPO
business, an early stage growth sector with increasing synergies to
the IT outsourcing sector.
"Lifewood is a highly process oriented BPO service provider with
a well-developed system platform and customer centric service
culture," commented Chris Chen,
Chairman and Chief Executive Officer of VanceInfo. "It invested
heavily over the past few years and has built a solid foundation
for us to move aggressively into this high-growth business that is
complementary to VanceInfo's service offerings. We believe this
strategic alliance will create synergies for both and allow
VanceInfo to serve a broader range of international customers with
combined offerings."
"We are very excited to join the VanceInfo family," said
Ronald Cheung, Chief Executive
Officer of Lifewood. "Leveraging VanceInfo's platform and
Lifewood's BPO capabilities, we hope to quickly bring this young
business to the next level and become a market leader in
China-based BPO services in the
future."
Lifewood generated approximately $4.5
million in net revenues in 2010. The transaction is expected
to be slightly accretive to VanceInfo's 2011 earnings.
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 2009 revenues, according to International
Data Corporation.
VanceInfo's comprehensive range of IT services includes research
& development services, enterprise solutions, application
development & maintenance, quality assurance & testing,
globalization & localization and other solutions and services.
VanceInfo provides these services primarily to corporations
headquartered in the United
States, Europe,
Japan and Greater China, targeting high-growth
industries such as technology, telecommunications, financial
services, travel services, manufacturing, retail and
distribution.
Safe Harbor
This news 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. Potential
risks and uncertainties include, but are not limited to, the
company's dependence on a limited number of clients for a
significant portion of its revenues, the economic slowdown in its
principal geographic markets, the quality and portfolio of its
services lines and industry expertise, and the availability of a
large talent pool in China and
supply of qualified professionals, as well as the PRC government's
investment in infrastructure construction and adoption of various
incentives in the IT service industry. Further information
regarding these and other risks is included in VanceInfo's filings
with the U.S. Securities and Exchange Commission. All information
provided in this news release and in the attachments is as of
April 11, 2011, 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.
SOURCE VanceInfo Technologies Inc.