AsiaInfo, Linkage to Merge
Under the terms of the agreement, Linkage shareholders will receive $60m in cash and approximately 26.8m AsiaInfo shares upon closing of the transaction. The transaction is expected to be accretive to non-GAAP earnings per share in 2010. The transaction will leverage both the companies to provide a full-service offering to telecom operators.
According to AsiaInfo, upon closing, Steve Zhang, president and CEO of AsiaInfo, will become president and CEO of AsiaInfo-Linkage. Libin Sun, chairman and CEO of Linkage, will serve as executive co-chairman AsiaInfo-Linkage and James Ding, chairman of AsiaInfo, will serve as co-chairman of AsiaInfo-Linkage.
Steve Zhang, president and CEO of AsiaInfo, said: “Going forward, we will leverage our products and services which range from system implementation and maintenance services to high-value consulting in order to capitalize on China's fast-growing telecom software industry. In addition to growing our business domestically, the merged company will explore new revenue drivers by looking abroad.”
Libin Sun, chairman and CEO of Linkage, said: “This is a very exciting development and milestone for our company and an important move that will benefit China's telecom software industry. For more than 10 years, AsiaInfo and Linkage have developed innovative products, built strong relationships with all three telecom operators in China and have delivered strong financial results.”
Will this merge benefit both the firms?
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