asiainfo-and-linkage-to-merge-into-18-billion-company

AsiaInfo and Linkage to merge into $1.8 billion company

On the eve of Linkage's US IPO, competitor AsiaInfo announces that the two companies will merge, creating an entity valued at $1.8 billion.

AsiaInfo will merge with Nanjing-based software development firm Linkage Technologies in a cash and stock deal that will create a company with a market capitalisation of more than $1.8 billion.

Linkage shareholders will receive $60 million in cash and 26.8 million AsiaInfo shares as part of the deal and will end up owning 35.8% of the new company, while AsiaInfo shareholders will own 64.2%.

Steve Zhang, AsiaInfo's president and chief executive officer, will assume the same role for the merged entity, which will be called AsiaInfo-Linkage. The enlarged company's board of directors will comprise nine members, six from AsiaInfo's board and three appointed by Linkage's board.

AsiaInfo provides...

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