RapidCloud International PLC Agreement with Oriented Media Group Bhd (7665R)

TIDMRCI

RNS Number : 7665R

RapidCloud International PLC

01 July 2015

RapidCloud International Plc

("RapidCloud", the "Company" or the "Group")

Partnership Agreement with Oriented Media Group Bhd.

RapidCloud International plc (AIM:RCI), the computing services, web-hosting and web-solutions provider based in Southeast Asia, announces that its wholly owned subsidiary, Emerge Systems (M) Sdn. Bhd. has entered into an agreement with Oriented Media Group Bhd ("OMEDIA") to develop a comprehensive business-2-business e-commerce platform for small to medium sportswear manufacturers, wholesalers and retailers across Asia.

Agreement with OMEDIA

OMEDIA is a Malaysia-based company focussed on software and services across the logistics and digital media industries. The logistics business offers web-based management systems to manage complex logistics networks while the digital media business offers a range of services including publishing massive multiplayer online games (MMOG), internet Ad serving and the development of edutainment related products and services. OMEDIA is listed on the Malaysian stock exchange with a market capitalisation of RM68.3m as of 29 June 2015.

Under the 24 month agreement, RapidCloud will supply all the necessary hardware and software for OMEDIA to develop an Online Sportswear Trading Platform ("OSTP") to enable manufacturers, initially across the Fujian province of the Peoples Republic of China ("PRC") to market and trade their products with wholesalers and retailers directly online.

RapidCloud will also offer additional modules for OMEDIA to enhance the OSTP over the term of the agreement to enable users to manage their own virtual storefronts, track and monitor customer accounts and improve their own finance and human resources via additional proprietary cloud based software and services.

The PRC E-commerce Market

The e-commerce market is growing rapidly with global ecommerce sales volume increasing from USD561.0 billion in 2010 to USD1.2trillion in 2014. In particular, the ecommerce market in PRC is estimated to contribute approximately 40% of the global e-commerce market, having recorded a Compound Annual Growth Rate of 62% over the last six years(1) .

Further to this, the sportswear market in PRC is large and established, with retail sales value of sportswear products at a CAGR of 10.6% from RMB104.4 billion (USD: 16.8bn) in 2009 to RMB172.9 billion (USD27.8bn) in 2014(1) . However, the sportswear industry itself has remained highly fragmented due to the prohibitive costs of marketing and capturing non-domestic customers with approximately 5,000 small to medium sized enterprises based in the province of Fujian province alone, which OMEDIA will initially target.

Agreement Value

The agreement is worth a minimum of RM5.0m for hosting and maintaining the OSTP and will be funded by OMEDIA through a partially underwritten fund raising currently being undertaken. However, the agreement could be worth up to RM22.3m dependent upon the adoption of the additional modules offered by RapidCloud and any additional funds made available through the funding exercise.

Raymond Chee, Managing Director of RapidCloud, said: "This is a significant agreement for RapidCloud, as it will see us providing and managing the infrastructure for what could be one of the most significant online trading platforms for sportswear across Asia. With retail sales across the country growing at an impressive rate, it is very exciting that we will be playing such an integral part in what we believe will be a great success for the entire sportswear industry."

Source:

   (1)      Independent Market Research Report, Smith Zander International, Malaysia

CONTACTS

 
 RapidCloud International Plc 
 Raymond Chee, Managing Director 
  David Cotterell, Chairman 
 WH Ireland, Nominated Adviser     Tel:+44 (0)20 7220 1666 
  and Broker 
 Adrian Hadden 
  Mark Leonard 
 Walbrook, Financial PR and IR     Tel: +44 (0)20 7933 8792 
 Paul Cornelius                    rapidcloud@walbrookpr.com 
  Guy McDougall / Sam Allen

About RapidCloud

RapidCloud, provides computing services, web-hosting and proprietary web-solutions, such as web-site building and e-commerce solutions. The Company is based in Southeast Asia and is one of the few solutions providers in the region to deliver its offerings through all three available Cloud Computing segments, i.e. Software-as-a-Service, Infrastructure-as-a-Service and Platform-as-a-Service.

Formed in 1999 the Company has a well-established cloud offering with a customer base of over 42,000. These are predominantly SMEs but also include blue-chip clients such as Deloitte, BAE Systems and Canon, for which RapidCloud's extensive R&D department creates bespoke software solutions.

RapidCloud currently has operations in Malaysia, Indonesia, Singapore, Thailand and the Philippines. According to industry research commissioned by RapidCloud from Frost & Sullivan in 2013, the Cloud Computing industry in Asia Pacific is expected to grow at a CAGR of 49.6% between 2013 and 2015, giving a market size of US45.6 billion by 2015. RapidCloud International plc was admitted to AIM on 14 August 2013. For further information, please visit www.rapidcloudasia.com

About Oriented Media Group Berhad

Oriented Media Group Berhad is a Malaysia-based company engaged in investment holding and the provision of information technology related products and services. The Company operates through two business divisions: Logistic Software Division and Digital Media Division. Logistic Software Division's products include the Web-based Integrated Port Management System (IPMS) and e-Port Community Application (e-Port). The Digital Media Division offers a range of services, which include Publishing of massive multiplayer online games (MMOG), Internet Ad serving and community building, social media digital services outsourcing and development of edutainment related digital applications.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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