InvestNet, a Hong Kong company which engages in information technology and telecommunications, today announced the successful acquisition of DSI Computer Technology Company Limited (DSI), a Chinese based system integrator in Shanghai, through the signing of a definitive purchase agreement.
The company signed a letter of intent with Champion Agents Limited (CAL), which wholly owns DSI, on September 28, 2004 and today the Company has successfully negotiated and signed a definitive agreement for the purchase of CAL. The Company shall issue to the shareholder of CAL an amount of common shares of the Company, which is equivalent to US$600,000 in value for the 100% acquisition of CAL upon closing of the transaction. The acquisition shall include all equipment, client base, intellectual properties and technical talents of DSI. The closing of the transaction will depend on the full completion of the due diligence process to CAL and DSI.
The unaudited total revenue for DSI in 2003 amounted to approximately US$1.0 million and unaudited total asset amounted to approximately $0.4 million. IVNE expects the acquisition to add approximately US$1.2 million in revenue in year 2005 with approximately $0.3 million adds to the bottom line.