Chinese financial services software provider Longtop Financial Technologies Limited has entered into a definitive agreement to acquire the business and assets of Sysnet Info-tech Corporation, for an undisclosed sum.
Longtop states that most of the acquisition consideration will be settled in cash and is expected to close prior to June 30, 2009. Earnings are expected to be accretive in the fiscal year ended March 31, 2010.
Founded in 1994 by Xiwu Shen, Sysnet provides comprehensive information technology customized solutions and services for leading property and life insurance companies. As a market leader for insurance core business solutions, Sysnet was ranked as the fifth biggest life insurance core business solution provider in China by IDC in 2007.
"I am really pleased that Xiwu Shen and his team will be joining Longtop. Sysnet will provide us with access to China Life and PICC, enhance our insurance product portfolio, significantly enlarge the scale of our insurance operations as well as provide integral cross-selling opportunities, and therefore rightly suits our growth strategy," commented Weizhou Lian, CEO of Longtop. "Longtop is now even better positioned to capitalize on the market opportunity in the insurance industry where we see information technology is heavily underinvested and IT services spending will continue to grow healthy year-on-year."