CDC to Buy in Microsoft China Arm

New media company CDC Corp. (NASDAQ: CHINA) announced on November 5, 2009 its plan to take control of Jiangsu Sowell Software Technology Co., Ltd., the operating platform of the Jiangsu Microsoft Technology Center.

In detail, CDC will acquire a 35% stake in Sowell Software Tech through its wholly owned subsidiary CDC Global Services Inc., which will also get the options to increase the holdings to 51%.

A CDC executive said that the acquisition would help its company better serve its over 6,000 customers all over the world, such as Microsoft Corp. (NASDAQ: MSFT) itself. However, the deal's completion is subject to a certain number of conditions and procedures.

The Jiangsu Microsoft Technology Center is the only technology base of Microsoft (China) Co., Ltd. in the eastern Chinese province of Jiangsu, mainly offering information technologies and R&D outsourcing services to customers in the cities of Nanjing, Wuxi, Suzhou, and Huaian.

On the other hand, CDC Global Services is set to build similar technology centers in many Chinese cities in the several years to come, with more than 5,000 technicians.

Source: www.enet.com.cn (November 06, 2009)

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