Link Result, through its operating subsidiary, A-IT Software Services Co., Ltd. (Shanghai) (AIT), provides information technology outsourcing services primarily to multinational financial institutions in China. As of July 31, 2008, it had a team of 77 employees who have extensive experience in IT services for the Financial Services sector. In the first half of 2008, AIT generated approximately RMB 9.1 million, or US$1.3 million, in net revenues.
In connection with the transaction, VanceInfo will pay $0.33 million in cash to the current shareholder for a 33% stake in Link Result and lend US$0.5 million to Link Result for its working capital needs. VanceInfo will have the right to acquire the remaining 67% in the next 18 months at its sole discretion. The total purchase price for the remaining 67% will depend on Link Result's financial performance as defined in the shareholders' agreement.
Mr. Chris Chen, Chief Executive Officer of VanceInfo Technologies, commented, "We are delighted to enter into this strategic alliance with Link Result. It demonstrates our commitment to investing and expanding our capabilities in the financial services vertical. The AIT team has many years of experience in the financial services domain. Leveraging VanceInfo's broader platform and brand recognition, we believe the joint venture is well positioned to capture a larger share in this rapidly growing vertical market." The transaction is expected to close in the third quarter of 2008.