AsiaInfo, Linkage to Merge by Q2 2010
PR Newswire, 12/07/09
Chinese telecom software and security solutions provider AsiaInfo (Nasdaq: ASIA) and Nanjing-based telecom software provider Linkage Technologies have jointly announced that they have signed a definitive merger agreement, forming AsiaInfo-Linkage, Inc.
Under the terms of the agreement, Linkage shareholders will receive USD 60 mln in cash and approximately 26.8 mln AsiaInfo shares upon closing of the transaction. Based on the closing price of AsiaInfo's stock on December 4, 2009, the combined company would have a market value of over USD 1.8 bln. Post-transaction, Linkage's legacy shareholders will own approximately 35.8% of AsiaInfo-Linkage with AsiaInfo's legacy shareholders owning approximately 64.2%. The merger has been approved by both companies' boards of directors and is subject to customary closing conditions, including the receipt of any regulatory approvals and the approval of AsiaInfo's shareholders. The transaction is expected to close by the end of the first quarter or early in the second quarter of 2010.
Upon completion of the transaction, AsiaInfo-Linkage will have over 8,000 employees, of which approximately 7,000 are engineers dedicated to project delivery and research and development. The combined company will also have 34 patents and an additional 27 patents pending approval in China and the United States.
Editor's Note: Linkage chairman and CEO Sun Libin said that the company has suspended its plans for an IPO, and has already recalled its roadshow team. For background information on Linkage's planned IPO, see "Linkage IPO to Raise Up to USD 176 Mln," MD 11/27/09 issue.
Keywords: AsiaInfo-Linkage telecom telecom software Linkage ASIA AsiaInfo HR M&A
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