Delaware, US-based AsiaInfo paid $36.3 million in stock to acquire the IT services operation from Lenovo, and created a new division called Lenovo-AsiaInfo Technologies Inc, by merging the acquired operation with AsiaInfo’s enterprise information solutions business unit. The business will employ some 500 people, and provide security products and services, management consulting, e-HR and business intelligence, e-government, and financial solutions to Chinese enterprises in multiple vertical industries.
The target operation made revenue of approximately $30m in the year ending March 31, 2004. AsiaInfo said the new division is expected to increase AsiaInfo’s revenue by between 40% and 50% within 12 months of the deal closing. AsiaInfo made revenue of $57.5 million in the year ending December 31, 2003.
It said the deal forms part of its strategy of targeting the fast-growing Chinese IT services sector. It cited figures from Chinese research firm CCW which said IT software and services spending in China will grow 28% annually to $32 billion in 2008.
