28 Aug 2009 11:53

Neusoft Group to buy three European mobile software developers

Shanghai. August 28. INTERFAX-CHINA - China's largest software developer Neusoft Group Ltd. will pay no more than EUR 12 million ($16.91 million) to buy three European mobile software and solution developers through its wholly-owned subsidiary in Europe, the company announced on Aug. 28.

Neusoft Europe AG will pay the amount to Finland-based Sesca Group Oy in exchange for 100 percent shares in the latter's three mobile software and solution development subsidiaries, namely Sesca Mobile Software Oy, Almitas Oy and Sesca Technologies SRL, whose customers include mobile phone manufacturers such as Nokia.

Neusoft Group said that the deals will help the company fulfill its goal to become a world leading mobile software and solution provider and facilitate its expansion into the European market.

Neusoft Group generated revenue of RMB 1.78 billion ($260.55 million) and a net profit of RMB 237.36 million ($34.74 million) in the first half of this year, up 8.4 percent and 31.6 percent year-on-year, respectively, according to financial figures that the company released on Aug. 28.

Zhao Fen, a security analyst with China International Capital Corp. Ltd., recommended the purchase of Neusoft Group shares on the Shanghai Stock Exchange in an Aug. 28 report, in which he expressed optimism over Neusoft Group's acquisition deals. Zhao also said the company will benefit from the improving market environment and achieve its target of RMB 638 million ($93.39 million) in net profit for the whole of 2009.

China's software outsourcing market is expected to bottom out by the end of September and will rebound in the fourth quarter of this year, according to Zhao.