TMCnet News
HiChina Gets New Controller(SinoCast China IT Week Via Thomson Dialog NewsEdge) BEIJING, April 10, SinoCast -- Beijing-based HiChina Web Solutions has sold more than 50% shares to Synnex Corporation (NYSE:SNX), making itself a controlling subsidiary of the latter, a global IT supply chain services company. Founded in 1999, HiChina (www.net.cn) is a pioneer in providing hosting services in China. As an accredited registrar by Both ICANN and CNNIC, the highest Internet administrative organizations in the world and in China, HiChina has been known for its domain name registration businesses, but it is now better considered as an e-commerce company. After the sale of its stake, HiChina, which now has approximately 360 employees, will continue its operations as a stand-alone unit with its own name, and its management team and business structure will keep unchanged, its present controller said. So far, both HiChina and Synnex have not revealed financial details of the transaction, but the value was presumed to be at around USD 50 million by many insiders. Before the deal, HiChina was owned by the US-based IDG Technology Venture Investment (IDGVC), Newbridge Capital, HiChina President Stan Zhang and his family, but their equity was less than 50% each. HiChina has received totally more than CNY 100 million of investments from Newbridge Capital and IDGVC till now. Sources have said that Newbridge Capital has sold its entire stake in the deal with SYNNEX, and IDGVC has also shrugged off some shares. HiChina Vice President Zhou Mao only disclosed that both Newbridge Capital and IDGVC sold part of their shares. The acquisition provides Synnex with an effective e- commerce vehicle and a broad customer base, including over 300,000 profiled end-customers, expressed Robert Huang, president and CEO of Synexx. "HiChina is a well respected organization and a pioneer in the e-commerce business in China," he said. HiChina decided to strengthen e-commerce operation in 2005, when it started up www.com.cn, a network marketing portal, and have injected up to CNY 100 million into the platform by now. Currently, HiChina is serving more than 100,000 enterprise users with fast, stable and secure websites as well as email hosting services, with server facilities located in 8 places in the world. Synexx offers a comprehensive range of services to original equipment manufacturers, software publishers and reseller customers worldwide. Its services include product distribution, related logistics services, business process outsourcing and contract assembly. Copyright 2007 Sinocast |