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Pansoft Signs Agreement to Acquire Interests of Hefei Langji and Subsidiary [Professional Services Close - Up](Professional Services Close - Up Via Acquire Media NewsEdge) Pansoft Company Limited, an enterprise resource planning software service provider for the oil and gas industry in China, announced that the company signed an agreement to acquire all of the equity interests of Hefei Langji Technology Co., and its subsidiary, Shanghai Zhongrui on September 9, for a total purchase price of RMB 10.8 million. According to a release, the purchase price is payable in four installments. The first installment, representing 35 percent of the total purchase price, will be paid in a combination of cash and the company's common stock. The three other installments are required to be paid on an annual basis over the next three years in a combination of cash and the company's common stock. Payments will be contingent upon Langji and Zhongrui meeting certain revenue targets. Founded in 2003, Langji is an HR solution provider to China's coal-mining industry and is based in Hefei in Anhui province. The company's customers for its human-resource management solutions are large, state-owned coal mining groups. Langji has more than 40 employees and in 2010 had total audited revenue and net income of $1 million and $0.26 million, respectively. Officials noted that Zhongrui, Langji's Shanghai-based sales and marketing arm, will remain a subsidiary of Langji and will focus on small and medium-sized companies in other industries. "Following the acquisitions of ITLamp Technology and HongAo Power last year, we have reached another important milestone in Pansoft's 2011 expansion plan through the acquisition of Langji," said Hugh Wang, Pansoft's Chairman. "Langji specializes in providing HR solutions tailored for large coal-mining businesses and has a strong presence in the industry. The acquisition will significantly increase our industry expertise and solution portfolio, as well as enhance sales of our other comprehensive solutions to the coal- mining industry. Moreover, Langji's existing customer relationships will further strengthen and deepen our strategic relationships with major coal-mining customers. This is an important strategic step and underscores our commitment to execute our long-term expansion strategy in the coal-mining industry, the next major revenue growth source for Pansoft. Langji is an excellent fit with our existing presence and expertise in the industry, and we look forward to the successful and efficient integration of the Langji and Zhongrui businesses." ((Comments on this story may be sent to [email protected])) (c) 2011 ProQuest Information and Learning Company; All Rights Reserved. |