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April 12, 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 it has acquired 100% equity interest in the main operating subsidiaries of LW International Holdings Limited ("Lifewood"), a
China-based company providing business process outsourcing ("BPO") services. Under the terms of the acquisition agreement, VanceInfo will pay an initial consideration of
$5.6 million in cash and stock, with contingent consideration to be paid based on Lifewood's financial performance over the next three years.
Established in 2004, Lifewood provides primarily data processing services to clients in
the United States,
Asia Pacific. Its key industry verticals include publishing, healthcare and financial services. The acquisition marks VanceInfo's strategic expansion into the BPO business, an early stage growth sector with increasing synergies to the IT outsourcing sector.
"Lifewood is a highly process oriented BPO service provider with a well-developed system platform and customer centric service culture," commented
Chris Chen, Chairman and Chief Executive Officer of VanceInfo. "It invested heavily over the past few years and has built a solid foundation for us to move aggressively into this high-growth business that is complementary to VanceInfo's service offerings. We believe this strategic alliance will create synergies for both and allow VanceInfo to serve a broader range of international customers with combined offerings."
"We are very excited to join the VanceInfo family," said
Ronald Cheung, Chief Executive Officer of Lifewood. "Leveraging VanceInfo's platform and Lifewood's BPO capabilities, we hope to quickly bring this young business to the next level and become a market leader in
China-based BPO services in the future."
Lifewood generated approximately
$4.5 million in net revenues in 2010. The transaction is expected to be slightly accretive to VanceInfo's 2011 earnings.
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.