AsiaInfo Holdings (ASIA) will sell its financial services IT solutions business to Fidelity National Information Services, a major US-based provider of IT services and information products to financial institutions.
The divestment is part of AsiaInfo's on-going strategy to focus on its core telecommunications software solutions and IT security products and services business.
According to the terms of the agreement, Fidelity has agreed to purchase the financial services IT solutions business in exchange for a maximum cash payment in the amount of approximately CNY25 million and to assume certain liabilities. The purchase price will be paid based on an installment plan with an initial CNY12 million to be paid upon closing. The remaining payments will be subject to adjustment based upon an earn-out calculation and certain other contingencies.
"The sale of the financial services business will allow us to concentrate on delivering our leading telecom software solutions and IT security products and services to a growing client base," said Steve Zhang, AsiaInfo's President and CEO. "We are confident that the benefits of this strategic focus on core business lines will be reflected in our performance in the coming quarters."