Reuters: “VanceInfo Technologies Inc and smaller rival HiSoft Technology International Ltd agreed to merge to create what they said would be the largest China-based offshore IT services provider by revenue.
Shares of VanceInfo, with a market value of $444 million as of close on Thursday, fell as much as 13 percent on the New York Stock Exchange, while those of hiSoft, with a market value of $373 million, fell 7 percent on the Nasdaq on Friday.
VanceInfo and HiSoft shareholders will each own about 50 percent of a company, valued at about $875 million under the terms of the tax-free, all-stock deal, the companies said.
“I think it is good news for Vance, it might not be good news for hiSoft,” Roth Capital Partners analyst Kun Tao said.”
- Companies Offering China-Related IT Services Form Global Alliance (prweb.com)
- CIOsynergy Announces VanceInfo as Official Sponsor for directIT San Francisco June 7, 2012 (prweb.com)