PE-backed hiSoft merges with VanceInfo
hiSoft Technology International, a major China-based company backed by investors including Wellington Management, Crosslink Capital and HarbourVest Partners has merged with VanceInfo Technologies.
The newly-merged entity, valued at $875 million, represents one of the largest mergers between two Chinese companies listed in the US - hiSoft trades on the NASDAQ and VanceInfo on the NYSE - and creates the largest China-based offshore IT services provider.
Headquartered in Dalian, China, hiSoft is a major provider of outsourced IT and R&D services, while Beijing-based VanceInfo specializes in IT outsourcing, business process outsourcing (BPO), and offshore software development
Under the terms of the deal, hiSoft and VanceInfo shareholders will each own around 50% of the combined company. hiSoft will be the surviving listed company in the merger, having raised $74 million in its IPO on the NASDAQ in 2010. At that time, it was backed by VC firms Granite Global Ventures, International Finance Corp., JAFCO Asia Technology Fund II, Draper Fisher Jurvetson ePlanet Ventures, Intel Capital, GE Capital, and Sumitomo Corporation.
A new name for the combined company will be announced shortly.
Law firm Orrick, Herrington & Sutcliffe represented VanceInfo on the transaction, led by Shanghai Capital Markets Partner Jeffrey Sun and San Francisco M&A and Private Equity Partner Richard Vernon Smith, with help from Maurice Hoo, based in Hong Kong.
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