InvestNet, Inc. today announced that its wholly owned subsidiary, Interchance Limited, has entered into a definitive agreement to acquire 100% of Shanghai DSI Computer Technology Co., Ltd. (DSI), a computer systems integration and business solutions company based in Shanghai.
DSI specializes in computer hardware, WAN equipment, videoconferencing equipment, and network safety solutions in addition to general installation, maintenance and consulting services. Under the terms of the agreement, InvestNet will issue to DSI shareholders a total of 1,000,000 common shares in exchange for all the issued and outstanding shares of DSI. The final acquisition of DSI is subject to the completion of a US GAAP audit of DSI's financial statements and the approval of Chinese authorities that would permit DSI to become a subsidiary of a foreign company.
DSI is primarily engaged in the provision of LAN/WAN integrated computer product solutions to major corporations operating in China, including structured cabling, router and switches, network security, network management. Major customers include British Petroleum, Kentucky Fried Chicken, Mary Kay, Dell Computer, Lily, Atlas Copco, Schindler, and Fuji Film. Further, DSI now offers computer business services in an effort to realize higher margins and recurring income streams. DSI's computer business services are based on a comprehensive support infrastructure that covers 40 Chinese cities including Beijing, Shanghai, Guangzhou, Tianjin and Shenzhen. Business services include hardware maintenance, network management, and IT consulting. DSI is also authorized to service the integrated business systems utilized by major telecommunications providers such as MCI Inc., NTT Data and China Netcom.
Once the acquisition of DSI is completed, InvestNet intends to capitalize on DSI's extensive infrastructure both in terms of client base and distribution networks to further penetrate the growing market for real time business solutions in China. DSI will market Advance Tech's real-time IT software solution for trading securities, telecommunications call routing, inventory control, accounting, payroll and mobile payment systems to its clients in China. DSI will also assist InvestNet in the ongoing development of its Mobile Payment System (MPS) which is designed to facilitate real-time money transactions through mobile phones with WAP or Bluetooth capabilities. The patent for the protocol of InvestNet's Mobile Payment System has been filed with the US Patent & Trademark Office.