AsiaInfo Holdings, Inc., a provider of telecom network and software solutions in China, recently announced that it has entered into a definitive agreement to acquire US$9.0 million in Human Resource Management (HRM) and Business Intelligence (BI) assets from Pacific Software (China) Limited, a privately held, medium-sized software solutions enterprise based in Hong Kong.
The purchase price is comprised of approximately US$6.45 million in cash and US$2.55 million in AsiaInfo stock, subject to various adjustments.
Pacific Software's customers in the HRM market are mostly large-scale enterprises including Chinese SOEs, and include companies such as Sinopec. Pacific Software's established presence in the BI market also includes a number of strategic customers, such as PetroChina, Air China and the Ministry of Railway, and provides a strong entrance for the selling of AsiaInfo's own BI and CRM products outside the telecom industry.
Xingsheng Zhang, President and Chief Executive Officer of AsiaInfo said, "This acquisition represents an important part of our change in strategic focus from a total telecom solutions provider to a total customer solutions provider. We have for some time been looking at new industry verticals to diversify and further grow our business. Expansion into the HRM and BI markets makes good sense, allowing us to take advantage of our expertise in software development and move into a quickly growing and attractive market, thus significantly expanding our customer base.
Mr. Roger Wei Zhong Chao, Managing Director of Pacific Software, said, "We are very pleased to have found a partner for our HRM and BI business as well suited as AsiaInfo. These business segments have expanded significantly recently. While we have been able to very successfully manage the growth so far, it has become clear that in order to meet its increasing customer needs and carry out all contracts without compromising quality, we needed to bring in additional resources to this business. AsiaInfo not only brings the necessary financial resources to this business for its necessary expansion, but also combines the management experience to successfully oversee its growth."