Asia Payment Systems has signed a binding agreement to acquire the business operations of Global Uplink Communications in mainland China and Hong Kong.
The agreement with Global Uplink China calls for the purchase by Asia Payments China of all of the assets of Global Uplink China's operating center in Guangzhou, the transfer of all the staff of Global Uplink China to Asia Payments China, the granting of an option by the shareholders of Global Uplink China to Asia Payments China for Asia payments China to acquire all the shares of Global Uplink China in the future and the appointment of Asia Payments China as its exclusive provider of data processing and operation related services, for a total cash consideration of CNY1,500,010.
The agreement with the shareholders of Global Uplink HK calls for the purchase of 100% of Global Uplink HK by Asia Payments HK for a cash consideration of HK$500,000. All formalities and final documentation are expected to be completed by the end of the first quarter of 2006.
Global Uplink China has grown over the past five years as a successful business in business processes outsourcing (BPO), loyalty programs and customer relations management (CRM) and related services. It operates a 200-person call center in Guangzhou and is in the process of expanding to Shanghai, Beijing and other major cities in China. Global Uplink HK acts as its marketing arm in Hong Kong to service Global Uplink China's clients in Hong Kong and Macau. Its current client base includes financial institutions and multi-national corporations operating in China and Hong Kong.
KK Ng, President and CEO of Asia Payments, said, "Global Uplink China is a well managed company and with these transactions Asia Payments will quickly establish a significant presence in the Southern China market as well being well positioned to expand its business in other major cities in China."