VanceInfo Technologies announced on Friday that it would merge in a 100% stock-for-stock transaction with its rival hiSoft Technology to create what they say will be the biggest China-based offshore IT services provider by revenue.
Under the terms of the agreement, VanceInfo and hiSoft shareholders will each own 50% of the combined company upon completion of the transaction. Each party will appoint four members to the combined board and the company will operate under a shared management structure and a new name. As such, it represents one of the first merger of equals in China.
As of the announcement, the companies have a combined equity...
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