VanceInfo Technologies Inc. and hiSoft Technology International Ltd. announced that they have signed a final merger agreement. The companies agreed on an all-share “merger of equals” with stock value of approximately $875 million. Under the terms of the agreement, stockholders of VanceInfo and hiSoft will each own approximately 50 percent of the combined company. HiSoft’s original stock will remain listed on the NASDAQ Global Select Market. The combined company’s new Chinese name is VanceInfo and hiSoft, and its new English name will be announced in due course.
Upon completion of the transaction, Lu Zhequn, present CEO of hiSoft, will serve as the CEO of the combined company. Chen Shuning, the founder and present CEO of VanceInfo will serve as the chairman. The board of directors of the combined company will consist of eight directors, four selected by VanceInfo and four selected by hiSoft.
The combined company expects 2012 revenue of more than $670 million, becoming China's leader in global IT services and the largest Chinese offshore IT services provider, according to industry market research reports. The combined company is scaled and diversified for global competition. Thanks to the complementary customer base created by VanceInfo and hiSoft, the combined company will have a strong customer platform with asset diversification, various business channels, solid capital flow and strong financial statements. Customers of the combined company will benefit from abundant consultants and engineers from around the world. The excellent management team will provide extensive industry knowledge and experience.
Edited by Lin Hong, Zhao Lu and Michael Thai