Chinese software maker UFIDA Software and its subsidiary will acquire Shanghai Infoservice Technology for CNY491 million, to enter the Chinese automotive sales and after-sales service information market.
This is reportedly the largest acquisition in the Chinese management software industry in 2010. According to a report published by UFIDA Software, the company will invest CNY486 million to acquire a 99% stake in Infoservice and its Jiangxi-based wholly-owned subsidiary will invest CNY4.91 million to acquire a 1% stake in the Shanghai-based software company.
UFIDA Software said that it will further integrate industry resources to form a more complete automotive industry solutions and service capacities. This acquisition will help improve the revenue growth and profit ability of the major businesses of the company.
With registered capital of CNY36 million, Infoservice focuses on the design, development, and implementation of automotive application software and solutions; the automotive business management consulting services; the system integration of supporting computer software and hardware; and the automotive information technology outsourcing services. In 2009, Infoservice's operating revenue was CNY92.81 million and its net profit attributable to shareholders was CNY27.13 million.