Technology & Telecom Sector

Transcription

1 echnology elecom Sector 1st Quarter 2007 hina echnology elecom A Quarterly ighlights isoftstone Information Service orp. Raises US$45 million in Series B Financing Investment round into the Financial and nergy sector I outsourcing services provider was led by Fidelity Asia Ventures. egend Silicon Raises US$40 million in Series D Financing Beijing Suite 11J, riental Kenzo Plaza 48 Dongzhimen Wai Avenue Beijing , hina +86 (10) ong Kong Suite 3518, Jardine ouse ne onnaught Place entral, ong Kong San Francisco Suite 3330, 50 alifornia Street San Francisco, A 94111, USA +1 (415) Shanghai 5F rystal entury ower 567 Weihai Road, Jingan District Shanghai , hina +86 (21) [email protected] he investment led by Intel apital will help egend Silicon develop terrestrial DV demodulation I products. Kingsoft o. td. (Japan) Receives US$22 million from JAF he investment will help Kingsoft expand its sales of office software and services in the Japanese market. lobal Data Solutions Receives US$20 million Investment in Series B Financing lobal Data Solutions is the first Business ontinuity Disaster Recovery I outsourcing company focusing on the financial industry in hina. hina obile Acquires 88.9 in Paktel td. for US$284 million he acquisition gives hina obile access to the fast growing mobile communications market in Pakistan. atitude apital roup is an Asian merchant banking firm, specializing in hina cross-border A and private placements. We mainly focus on: (i) serving middle market and emerging growth companies in the technology, general industries, healthcare and real estate sectors in hina; (ii) multinationals and international listed corporates looking to enter hina in our core sectors; and (iii) international corporates seeking an Asian/hina strategic buyer and/or investor in their business. atitude apital roup is headquartered in ong Kong with offices in Beijing, Shanghai and San Francisco.

2 Introduction he purpose of this report is to provide a summary of echnology elecom A and private placement activities in the first quarter of 2007, highlighting notable selected transactions that are relevant to venture capital, private equity, and strategic buyers/investors. We focus on both financial and strategic buyers/investors acquiring hina assets and hinese corporations acquiring overseas targets. ur review is broken down into the following seven major echnology elecom sectors: Semiconductor Software Solutions etwork quipment utsourcing / ffshoring elecom quipment elecom Services Ps Peripherals owever, during the first quarter of 2007, there was no notable transaction in the etwork quipment and Ps Peripherals sector. Semiconductor In the Semiconductor sector, egend Silicon, a fabless semiconductor company that develops technology and applicationspecific standard products (ASSP) for digital broadcasting and broadband transmission, completed a Series D financing round of US$40 million. he 2 new technologies that egend Silicon has already patented and brought to market, DB- (Digital ultimedia/v Broadcasting-errestrial) and DB- (Digital ultimedia/elevision Broadcasting-errestrial/andheld), were selected to form the backbone of the hina DV terrestrial standards. Another notable transaction was irrus ogic s purchase of aretta Integrated ircuits, a fabless integrated circuit (I) design company based in Shanghai. he acquisition is expected to diversify irrus ogic s expertise in analog I technology, providing them with a stronger long-term strategic position to grow in hina. ead Investor(s) / Selected Semiconductor s ar 21, 2007 Intel apital egend Silicon $40.0 na na ar 7, 2007 ar 5, 2007 Jan 5, 2007 elecom quipment QUA, Samsung Venture Renesas echnology irrus ogic [ASDAQ: RUS] A $8.0 na na Xi'an Rui-Wei Systems echnology aretta Integrated ircuits $2.1 na na $ $10.5 Fabless semiconductor company engaging in the development of broadband wireless transmission technologies and products Develops and markets semiconductor processing products and solutions mbedded chips developer for household automobile electronic digital products Analog I design company with expertise in power management In the elecom quipment sector, as part of strategic partnership formation between P International and Andes Industries (the parent company of Andrew orporation), P acquired Andrew orporation s antai broadband cable facilities. he partnership enables the combined entity to deliver more compelling end-to-end solutions to cable multiple system operators (S) around the world. he other notable transaction involved hengdu-based S echnology, which secured US$10 million from SAIF. he company offers integrated RF, fiber optics and microwave technologies in wireless transmission applications. ead Investor(s) / Selected elecom quipment s Andrew Broadband Andrew orporation s P International, Jan 22, 2007 elecommunication na na broadband cable manufacturing Inc. (antai) o., td. operations in antai, hina Jan 4, 2007 SAIF S echnology $10.0 na na Provides 3 RF sub-systems 1

3 Software Solutions In the Software Solutions sector, Kingsoft s Japanese subsidiary received US$22 million from JAF. Kingsoft held 10.5 of hina s secure content management (S) market in , and currently is among the top 5 S solutions provider in Japan 2. his investment from JAF will help Kingsoft expand sales of its word processing software (WPS) and Antivirus products in the Japanese market. ar 7, 2007 ead Investor(s) / JAF Selected Software Solutions s Kingsoft o. td. (Japan) $22.0 na na Feb 12, 2007 obi Partners Inspiry orporation na na na Jan 9, 2007 e-future Information echnology Inc. [ASDAQ: FU] utsourcing / ffshoring anjing angheng etwork echnology Development o. td. $ $0.4 Develops and markets office applications, anti-virus software, translation software and online gaming and retailing services Provides 2D barcode technology and applications in hina A regional independent software vendor focusing on ast hina's retail market In the utsourcing sector, isoftstone Information raised a US$45 million round of financing led by Fidelity Asia Ventures. he new round of financing will help further strengthen isoftstone's global reach and delivery capabilities, deepen and widen its vertical domain expertise, and accelerate its expansion into new business areas in information technology outsourcing (I) and business process outsourcing (BP). In another transaction during the quarter, lobal Data Solutions (DS) received a Series B investment of US$20 million from the IF, Softbank, and hina verbright. DS currently has a near monopoly in the business continuity (B) disaster recovery (DR) business serving hina s financial services industry. he investment will help DS explore business opportunities in the Asia Pacific region and increase the company s market share in hina s government sector. Also in the first quarter, iger anagement invested US$20 million into the ongtop roup, one of top 3 financial services sector I outsourcing companies in hina. In a notable outbound cross-border transaction, hinese I outsourcing company isoft purchased nvisage Solutions of the US. he acquisition provides isoft with strong specialist I consulting capabilities. With Fortune 1000 clients throughout the US, nvisage Solutions is considered one of the premium experts in racle R and front office enterprise solutions. ar 16, 2007 ar 14, 2007 ead Investor(s) / Fidelity Asia Ventures, itsui Ventures lobal Fund, AsiaVest Partners, Infoech Pacific Ventures IF, Softbank, hina verbright Selected utsourcing / ffshoring s isoftstone Information Service orp. lobal Data Solutions td. $45.0 na na $20.0 na na Feb 27, 2007 isoft nvisage Solutions na na Feb 26, 2007 na 3 Achievo orporation $24.0 na na Jan 23, 2007 iger anagement ongtop roup $20.0 na na I outsourcing service provider in hina, focused on FSI and energy sectors eading I outsourcing provider, focused on business continuity and disaster recovery US I outsourcing and consulting company lobal offshore software and information technology outsourcing provider FSI I outsourcing services provider 1 ID 2 ASII magazine 3 Institutional and private investors 2

4 Jan 8, 2007 elecom Services ead Investor(s) / hina ational Software Services o., td. [SS: ] Selected utsourcing / ffshoring s inge lobal Resource Inc. na na eading I outsourcing company, focused mainly on FSI sector In the elecom Services sector, hina obile entered Pakistan s mobile market by acquiring 88.9 of Paktel td. As of September 2006, Paktel had 1.56 million subscribers, a 69 increase from December his represents approximately 3.5 of the Pakistan mobile communications market. Jan 23, 2007 ead Investor(s) / hina obile [KS: 0941] Selected elecom Services s Paktel td. $ $319.6 obile operator in Pakistan * * * * * * * * he information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not undertake to advise you as to any change of our views. his is not a solicitation or any offer to buy or sell. atitude apital roup ( atitude ) has produced this report for private circulation only. All information and advice is given in good faith but without any warranty. atitude, our affiliates or companies or individuals connected with atitude, may have used the information set forth herein before publication and may have positions in, may from time to time purchase or sell, or may be materially interested in any of the securities mentioned or related securities. 3

5 Beijing ong Kong San Francisco Shanghai Suite 11J riental Kenzo Plaza 48 Dongzhimen Wai Avenue Beijing , hina Suite 3518 Jardine ouse ne onnaught Place entral, ong Kong Suite 3330, 50 alifornia Street San Francisco, A USA 5F rystal entury ower 567 Weihai Road, Jingan District Shanghai , hina el +86 (10) Fax +86 (10) el Fax el +1 (415) Fax +1 (415) el +86 (21) Fax +86 (21) [email protected]