Chinese Firm Buys Offshore Software Development Company

VanceInfo Technologies Inc., an IT service provider and one of the leading offshore software development companies in China, has announced that it has acquired a 100% stake in the main operating subsidiary of LW International Holdings Limited.

Under the terms of the acquisition, VanceInfo will pay an initial consideration of USD5.6 million in cash and stock to Lifewood, with contingent consideration to be paid based on Lifewood's financial performance over the next three years.

Formed in 2004, Lifewood is a Chinese company that provides business process outsourcing services. It offers primarily data processing services to clients in the United States, Europe, and Asia Pacific. Its key industry verticals include publishing, healthcare, and financial services.

The acquisition marks VanceInfo's strategic expansion into the BPO business, an early stage growth sector with increasing synergies to the IT outsourcing sector.

As an industry pioneer since 1995, VanceInfo was the first Chinese software development outsourcing firm listed on the New York Stock Exchange and it ranked number one among Chinese offshore software development service providers for the North American and European markets according to International Data Corporation.

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