The Hartcourt Companies, Inc. announced today that it has signed a definitive agreement to purchase a controlling interest of Shanghai Computer ServiceNet Co., Ltd, a leading independent third-party IT service provider based in Shanghai.
The total purchase consideration is approximately US$2.5 million payable in cash and restricted shares. The management team of the company will hold the remaining minority interest. The acquisition is strategically important for Hartcourt's fast-growing IT distribution network. Using ServiceNet capabilities would bring major competitive edge to all Hartcourt subsidiaries. They will be able to enhance customer service, develop brand equities and expand into new market segments. The high profit margin of IT service business is another attractive and lucrative sector that Hartcourt plans to increase its investment.
Established in 2000, ServiceNet provides a wide range of IT services to several multinationals in China, such as HP, Dell, Philips, Toshiba, Sony, Samsung, Seagate, etc. The types of services include Authorized Service Center, On-site Services, Hardware Support, System Maintenance, RMA management, and FA Testing. It also provides IT outsourcing services to other multinationals like BAT and Ericsson. Its service network covers 15 major cities in China, including Shanghai, Guangzhou, Xiamen, Hangzhou, Xi'an, Shenzhen, and Kunming, etc.