BEIJING, March 21, 2011 /PRNewswire-Asia/ -- VanceInfo Technologies Inc. (NYSE: VIT) ("VanceInfo" or the "Company"), an IT service provider and one of the leading offshore software development companies in China, today announced that its Board of Directors has approved a share repurchase program, effective March 2011. Under the program, VanceInfo has been authorized, but is not obligated, to repurchase up to $40 million worth of outstanding American Depositary Shares (ADSs) representing the ordinary shares of VanceInfo from time to time over the next 12 months, depending on market conditions, share price and other factors, as well as subject to the relevant rules under US securities regulations.
The share repurchase program will be funded by the Company's 2011 free cash flow as well as existing working capital. As of December 31, 2010, the Company had cash, cash equivalents and marketable securities of approximately US$181.7 million.
As of December 31, 2010, the Company had 44,556,910 ordinary shares issued and outstanding.
In early March 2011, VanceInfo acquired 100% equity interest in Bright Consulting ( Beijing) Limited("Bright"), a China-based IT services company providing Oracle consulting and implementation services to Chinese domestic clients. Under the terms of the acquisition agreement, VanceInfo will pay an initial consideration of approximately $0.7 million in cash and stock. Contingent consideration will be paid based on Bright's financial performance in the next 24 months. Bright generated approximately $1.5 million in net revenues in 2010. The acquisition aims to strengthen VanceInfo's domestic consulting capabilities, especially in the Oracle ERP area.About VanceInfo VanceInfo Technologies Inc. is an IT service provider and one of the leading offshore software development companies in China. VanceInfo was the first China software development outsourcer listed on the New York Stock Exchange. The Company ranked number one among Chinese offshore software development service providers for the North American and European markets as measured by 2009 revenues, according to International Data Corporation.