Asian Technology Newsletter
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ASIAN TECHNOLOGY NEWSLETTER SEPTEMBER 2009, I ss U E 6 0 A Quarterly newsletter of developments in the technology sector 4 CONTENT S We hope that you find the Asian Technology grow through acquisitions, or to achieve CH I NA.......................1 Newsletter informative. maximum value in a divestment or fund H O N G K ONG ....................2 raising exercise, please contact us at any Business Development Asia (“BDA”) is one of our offices. IND I A..........................2 an investment banking firm specializing JAPAN.........................3 in executing cross-border transactions KOREA.........................4 involving Asia, including acquisitions, Andrew Huntley, Senior Managing Director divestments, JVs, capital raising and [email protected] restructuring. We have offices and professional staff throughout Asia, the Middle East, Europe, and the US. If you would like to learn more about how BDA is positioned to help your business China Technology Stock Indices (12 months ending 17Sep09) 3i Infotech, an Indian IT company, has agreed to acquire the remaining 49% 180 of Elegon Technologies from Yucheng Technologies, a Chinese IT solution and 160 services provider to the Chinese banking industry. Elegon Technologies is a JV 140 China between 3i Infotech and Yucheng, and US will become a wholly-owned subsidiary 120 of 3i Infotech. July 15, 2009 Japan 100 India China Mobile, China’s largest mobile EU 80 carrier, aims to sign a series of deals Korea with key Taiwanese firms, helping them gain access into China’s rapidly growing 60 telecoms market. The deals include an 40 agreement with smartphone maker HTC Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 to launch at least one model in China this year to be called the Ophone and at Source: ThomsonOne, BDA least five models in 2010. China Mobile is also working with the Foxconn Group, 2 A si A N T E C HNOLOGY NEW S LETTER S EPTEMBER 2009, I ss U E 6 0 Technology P/R Multiples for Selected Countries( 17Sep09) wireless communication products 2.5x distributor, will acquire Shanghai Xieheng Telecommunications Equipment 2.0x Co, a Chinese mobile phone retailer, 2.0x for US$46.8m plus the value of the net assets of Xieheng (estimated to be no 1.5x more than US$1.5m as of July 31, 2009). The transaction is expected to close 1.0x in the fourth quarter of 2009. August 6, 0.7x 0.6x 0.7x 2009 0.6x 0.5x 0.4x Hong Kong 0.0x China India Japan Korea US EU VanceInfo Technologies Inc, a Chinese offshore software developer, has Source: ThomsonOne, BDA acquired the operating subsidiaries of Hong Kong CRM firm TP Corp Ltd. which includes electronics firm Hon Hai that its wholly-owned subsidiary, VanceInfo will pay an initial US$1.1m. and contract cellphone maker Foxconn Shenzhen Xinguochuang Information Contingent consideration will be paid among its subsidiaries, to jointly develop Technology Co, has acquired the based on TP’s financial performance in and manufacture e-books to be sold value-added service and channel sales the next 18 to 30 months. Headquartered in China. China Mobile is also looking business of Shenzhen Newway Digital S in Hong Kong, TP develops and markets at a deal with Taiwanese chip designer & T Co (“Newway Technology”). Newway customer care software products in Mediatek to jointly develop mobile phone Technology, launched in 2006, is a hi- China and Southeast Asia and provides chipsets that can run on the company’s tech enterprise whose main business is call center outsourcing services in Hong 3G network. August 24, 2009 the development and manufacturing of Kong. July 6, 2009 digital mobile phones. August 6, 2009 China TechFaith Wireless, a Chinese mobile design and manufacturing KongZhong Corp, a Chinese wireless India company, will acquire smartphone value-added services firm, will acquire maker QiGi, for US$13m. China TechFaith Simlife International Inc, a mobile game will pay US$500,000 in cash and 4.4m developer in China, for a consideration Gemini Communications Ltd (“GCL”), Nasdaq traded shares. The number of US$4.25m in cash and the issuance an Indian communications solutions of shares issued is contingent on QiGi of 6 million of KongZhong’s ordinary provider, has acquired 51% of Indian earning US$8m in 2010 and US$10m in shares to certain shareholders of Simlife, start-up firm SANAT Technologies. 2011. August 17, 2009 contingent upon Simlife’s performance in SANAT Technologies is a producer of data the year subsequent to completion of the storage products and a unified network Jingwei International Ltd, a Chinese acquisition. June 22, 2009 solutions provider. June 27, 2009 data mining and customer relationship marketing services provider, announced Pypo China Holdings Ltd, a Chinese IBN18 Broadcast Ltd, an Indian 3 A si A N T E C HNOLOGY NEW S LETTER S EPTEMBER 2009, I ss U E 6 0 broadcasting company, has acquired Technology Trading Multiples for Selected Countries ( 17Sep09) Television Eighteen’s 15.47% stake in 40.0x Viacom18 Media, for US$31.1m, which includes US$6.1m as an option premium. 32.6x IBN18’s stake in Viacom18 has increased 30.0x to 50%, making IBN18 a 50% partner in all Viacom18 channels. July 14, 2009 20.0x 16.2x 13.9x MphasiS Ltd, a business process 12.3x 11.3x outsourcing services provider, will 6.2x 10.0x 7.3x 8.4x acquire AIG Systems Solutions Private 5.4x 4.9x 4.6x 4.2x Ltd (“AIGSS”), a provider of software application development and services, 0.0x from American International Group, China India Japan Korea US EU the US based insurance and financial services company, for US$25m. Both Source: ThomsonOne, BDA EV/EBITDA P/E MphasiS and AIGSS are based in India. August 13, 2009 and Travelocity will continue to operate Max Interactive will continue under the as standalone properties after the same name and become part of the Quippo Telecom Infrastructure Ltd transaction. August 20, 2009 Ybrant Digital Network. August 04, 2009 (“QTIL”) has completed the merger with Wireless-TT Info-Services Ltd (“WTTIL”), Viper Networks Inc, a US-based Megasoft Ltd has approved the sale the tower arm of Tata Teleservices Ltd communications company, has signed a and transfer of its IT division BlueAlly, (“TTSL”). QTIL acquired 49% in the letter of intent to merge with Cirilium India to Trianz Inc, USA for US$15m. Trianz merged entity of WTTIL for US$488m Pvt Ltd, a private Indian communications Inc, USA is a wholly owned subsidiary and transfer of its 5,000 telecom towers provider. Viper expects to close the of Bangalore based Trianz Holdings Pvt in the merged entity. Although TTSL will transaction by September 30, 2009. Ltd. August 19, 2009 have five board seats by virtue of its 51% August 19, 2009 stake in the merged company, QTIL will Frontline Strategy Ltd, a private equity nominate an independent chairman to Web Spiders, an Indian software firm, has acquired an unspecified stake the 10-member board besides having consulting company, has acquired 51% in Tejas Networks Ltd, an Indian optical four board members in the 51:49 JV. of Netwings Infotech Pvt Ltd (“NIPL”), networking equipment manufacturer. August 25, 2009 which is engaged in delivering fibre The investment comes out of Frontline’s optic networking and GIS solutions, for India Industrial Growth Fund (“IIGF”), Travelocity Global, a US based online an undisclosed consideration. July 27, a US$200m fund launched in 2007 travel firm, has acquired India’s online 2009 focusing on growth sectors and SMEs. hotel distribution network Travelguru. Ybrant Digital, an Indian digital marketing Travelguru is estimated to be valued at solutions company, has acquired Max Frontline acquired the stake through US$12m. Venture capital firms Sequoia Interactive, an Australian interactive a secondary transaction. Tejas had Capital India and Battery Ventures have advertising, sales, and marketing network raised US$75m in funding, and investors committed US$25m in two rounds of focusing on email, SMS and one-to-one reportedly hold nearly a 50% stake in the funding to Travelguru. Both Travelguru marketing, for an undisclosed amount. company. August 21, 2009 4 A si A N T E C HNOLOGY NEW S LETTER S EPTEMBER 2009, I ss U E 6 0 Japan Korea Mobile USA Inc after the parent company NTT DoCoMo Inc, Japan’s largest mobile Creditors of Korea’s Hynix Semiconductor of the US mobile firm acquires it. SK operator, has acquired a 35% stake in Inc will invite bids for a major stake in Telecom holds a 15.3% stake in Virgin NextWave Wireless Inc’s software unit the world’s No. 2 memory chipmaker. Mobile, a JV between Virgin Group of PacketVideo for US$45.5m, to strengthen The stake sale, which is estimated to Britain and Sprint Nextel Corp of the USA. its music and video services. July 6, be worth US$3.7bn, is being managed Sprint Nextel announced it will buy Virgin 2009 by Credit Suisse, Woori Investment Mobile USA Inc for US$483m and merge & Securities Co and state-run Korea it. After the completion of the merger, SK Turbolinux Inc, a Japanese provider of Development Bank. September 8, 2009 Telecom is likely to be offered a 0.53% Linux operating systems and related stake in Sprint Nextel. July 30, 2009 services, will form a software development Samsung Electronics, a Korean 49:51 JV in Japan with Chinese software chipmaker, has dropped its bid to The Nielsen Company, a Dutch- firm iSoft Infrastructure Software acquire Korean storage company American information and media Co. Scheduled to be established in SanDisk. In September 2008, SanDisk company, has acquired KoreanClick, September, the JV is expected to be rejected a US$5.9bn takeover bid by a web measurement company, for capitalized at US$1m.