Published:
CDC Global Services Reaches Agreement with Nanjing High-Tech Zone to Acquire Jiangsu Microsoft Technology Center in China as Part of Its Rapid Expansion Plans
SHANGHAI - (BUSINESS WIRE) - CDC Global Services, a wholly-owned subsidiary of CDC Corporation
(NASDAQ: CHINA) and a provider of consulting, IT and IT-enabled
professional services, announced today it has executed a term sheet with
the Nanjing High-Tech Zone (Nanjing New & High Technology Economic
Development Corporation) to acquire a 35 percent stake, with an option
for up to a 51 percent stake, in Sowell, known also as the platform of
Jiangsu Microsoft Technology Center, that is expected to help fuel CDC
Global Services' rapid expansion in the growing IT outsourcing (ITO)
services market in China.
Sowell operates its ITO businesses, which also include R&D outsourcing
services, in Nanjing, Wuxi, Suzhou and Huaian and was the exclusive
technology base of Microsoft in Jiangsu Province. Jiangsu Microsoft
Technology Center, is a major Microsoft Technology Center where it
provides research and development services to Microsoft.
This investment is part of CDC Global Services' plans to build more IT
and R&D outsourcing services in China, which the company plans to grow
to 5,000 seats in a few years. Sowell provides IT and Research and
Development services that complement CDC Global Services' business which
includes IT and business process outsourcing services in India and
China. Sowell's ITO services include onsite and remote IT support/help
desk, IT infrastructure planning, custom/offshore application
development, network management and administration and application
maintenance and support.
"We expect that this planned acquisition will serve as the launch pad
for expanding our IT/R&D outsourcing capabilities in China to serve our
global clients," said C.K. Wong, chairman of CDC Global Services. "As
part of our acquisition strategy, Sowell is expected to serve as the
platform for rolling up other Microsoft Technology Centers and expanding
our services throughout China. In addition to Microsoft, Sowell is
expected to continue to attract more key clients, which we believe may
include national and local government agencies in China as well as local
and multi-national companies. This is a key part of our strategy in
seeking strategic initiatives that may include acquisitions,
partnerships and investments that will help CDC Global Services grow and
increase its market share in the high growth outsourcing services market.
"This planned acquisition is part of our strategic initiative to build
CDC Global Services into one of the world's leading R&D and IT
outsourcing centers for premier technology companies like Microsoft,"
said Wong. "CDC Global Services IT/R&D operations in China can also help
serve the outsourcing needs of some of CDC Software's 6,000 customers
worldwide. We believe this strategic initiative will help unlock
shareholder value for CDC Corporation shareholders.
"Notably, this planned acquisition also further strengthens our
relationship with the Nanjing government, and we expect to continue our
expansion in this region. We believe China holds significant growth
opportunity for the rapidly growing market of IT/R&D outsourcing
services. With other future planned acquisitions like this, as well as
partnerships with other software companies, we expect to be well
positioned to become a market leader in IT/R&D outsourcing for customers
around the world."
The acquisition of this interest in Sowell is subject to several
customary closing conditions, including the satisfactory completion of
due diligence by CDC Global Services.
About CDC Global Services
CDC Global Services provides IT consulting services, including
platform-specific services for Microsoft and SAP, as well as project
management, staff augmentation, managed-help desk solutions and a full
range of business process outsourcing offerings. It can also provide
hardware for data collection and RFID, through partnerships with some of
the industry's most reputable vendors. CDC Global Services embraces a
customer-first approach being able to draw upon a wide range of expert
resources to address each customer's unique business needs, while
keeping their best interest as a top priority. CDC Global Services
customers benefit from streamlined vendor management and the ability to
control project costs, while being able to access the right IT resources
through a singular point of contact. For more information, please visit www.cdcglobalservices.com.
About CDC Corporation
The CDC family of companies includes CDC Software (NASDAQ: CDCS) focused
on enterprise software applications and services, CDC Global Services
focused on IT consulting services, outsourced application development
and IT staffing, CDC Games focused on online games, and China.com, Inc.
(HKGEM:8006) focused on portals for the greater China markets. For more
information about CDC Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of
1995, including statements relating to our beliefs about CDC Global
Services, our expectations regarding the expansion of our ITO/R&D
business and the possible scope and geographic reach thereof, our
expectations regarding the continued holding of interests in Sowell by
the Nanjing High-Tech Zone, our expectations and beliefs regarding the
growth trends for ITO services, our beliefs regarding our ability to
expand operations now and in the future, our beliefs regarding Sowell's
continued ability to attract key clients, our beliefs regarding this
strategy and its ability to unlock shareholder value, our expectations
regarding continued expansion in this area, in Nanjing, and other areas
of China, and our beliefs regarding customer demand for ITO services and
the reasons therefor. These statements are based on management's current
expectations and are subject to risks and uncertainties and changes in
circumstances. There are important factors that could cause actual
results to differ materially from those anticipated in the forward
looking statements including, the ability of CDC Global Services to
address the business services requirements of the market, demand for and
market acceptance of CDC Global Services ITO operations, and the ability
of CDC Global Services to expand. Further information on risks or other
factors that could cause results to differ is detailed in filings or
submissions with the United States Securities and Exchange Commission
made by CDC Corporation in its Annual Report on Form 20-F for the year
ended December 31, 2008 filed with the Securities and Exchange
Commission on June 30, 2009 . All forward-looking statements included in
this press release are based upon information available to management as
of the date of the press release, and you are cautioned not to place
undue reliance on any forward looking statements which speak only as of
the date of this press release. The company assumes no obligation to
update or alter the forward looking statements whether as a result of
new information, future events or otherwise
CDC Corporation
Investor Relations:
Monish Bahl, 678-259-8510
mbahl@cdcsoftware.com
or
CDC
Software
Media Relations:
Lorretta Gasper, 678-259-8632
lgasper@cdcsoftware.com
Copyright © 2009, Business Wire, Inc., All rights reserved.
Copyright © 2009, NewsBlaze,
Daily News
Tags: Business wire, , georgia, High Tech, Software, Medical, Consulting, Accounting and other Professional Services, RFID, Radio Frequency Identification