Former Microsoft China head undertakes IT acquisitions
Shanghai. January 25. INTERFAX-CHINA - Tang Jun, former president of both Microsoft China and Shand Interactive Entertainment Ltd., will make a return to China's IT industry through a number of major acquisitions following a two-year absence from the sector, Tang announced on Jan. 25.
Financial information services provider, Inxite Information Industry Co. Ltd. (GaoTime), of which Tang is the chairman of the board, will acquire four IT companies in a transaction valued at $25 million.
Under the deal, GaoTime will pay 20 percent in cash and 80 percent through a share swap to acquire Qianxun Network, Ally Games Technology Co. Ltd., Hong Young Technology Co. Ltd. and Sheng Long, a wireless value-added service research and development team.
"It is GaoTime's long-term goal to evolve from just an information services provider to a comprehensive solutions provider," Tang said.
"We plan to list on either the Shenzhen Stock Exchange main board or on the exchange's Growth Enterprise Market in the next two to three years. Through this acquisition deal, we expect total revenue and net profit to increase by 120 percent and four-fold respectively," he continued.
According to Tang, Qianxun Network will aid GaoTime in the development of flash-based online stock trading and real-time information software. The Sheng Long R & D team will supplement GaoTime in the development of mobile financial information services, while Hong Young will provide IT outsourcing services. Ally Games will contribute its data processing technologies towards the deployment of GaoTime's new IT infrastructure.
Tang hopes that through the acquisition of Ally Games, Inxite will be able to tap the growing online gaming industry, as a previous non-competition agreement signed with Shanda upon his departure from the company has now expired.
With his record of success at both Microsoft and Shanda, Tang is a celebrity of sorts among IT industry insiders.
Tang joined Microsoft in 1994 and was appointed president of Microsoft China in 2002. After serving in this position for ten years, he joined Shanda Interactive as president, aiding its transition phase from a gaming operator to a comprehensive entertainment platform.
Tang has been chief executive officer (CEO) and president of New Huadu, the parent company of GaoTime, since April 2008.
Established in 1994, GaoTime is a Shanghai-based financial information services provider. The majority of its clients are security and mutual funds firms.