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.
Hi-SOFT牛奶軟糖 (Photo credit: SimonQ錫濛譙)
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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.”
via VanceInfo, HiSoft to merge to create China outsourcing leader | Reuters.
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