Longtop Signs Agreement to Acquire Giantstone, a Leading Core Banking Solution Provider in China
Strategic Acquisition to Complement Longtop's Solution Offering and be Accretive to Earnings
Founded in 2000 and exclusively focused on core banking, Giantstone primarily provides implementation, customization, consulting as well as maintenance services to a leading national joint stock commercial bank. This leading national joint stock commercial bank is replacing its existing core banking systems with a global software company's core banking system as well as various applications being developed by domestic vendors including Giantstone. Giantstone also has its own proprietary core banking product that in future will be targeted at smaller banks in China. Giantstone has over 300 employees, most of whom are engineers dedicated to core banking project delivery as well as research and development.
"We believe one of the keys to successful core banking implementations in China is domestic knowledge which the Giantstone management team, one of the most experienced in China's banking industry, brings to Longtop. Over the next ten years, we believe the national commercial, regional, larger city banks and smaller banks in China will accelerate their investment in upgrading or replacing their existing core banking systems. The acquisition of Giantstone fills one of the main gaps we had in our product portfolio and will allow us to capitalize on the core banking opportunity in the non-Big Four Bank customer segment, which now accounts for 35 to 40% of our software development revenues. Our core banking competency will also open up new cross-sell opportunities for our existing solutions such as BI and risk management applications. Furthermore, Giantstone's proprietary core banking solution aimed at smaller banks will also potentially open up a new customer segment," said
According to the market research firm IDC, core banking systems became the "largest IT investment category" in 2008 with a total market size of
Conference Call
Longtop will host a conference call today to discuss this announcement, at
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A live audio webcast of the conference call, as well as online replay of the call, will be available on the investor relations section of Longtop's website at http://www.longtop.com/en/index.asp .
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "believes," "expects, " "anticipates," "intends," "estimates, "the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include the effectiveness, profitability, and marketability of the company's solutions; the Company's limited operating history; its reliance on a limited number of customers that continue to account for a high percentage of the Company's revenues; risk of payment failure by any of its large customers, which could significantly harm the Company's cash flows and profitability; the ability of the Company to operate effectively as a public company; future shortage or availability of the supply of employees; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Any projections in this release are based on limited information currently available to us, which is subject to change.
About Longtop Financial Technologies Limited
Longtop is a leading software development and solutions provider targeting the financial services industry in China. Longtop develops and delivers a comprehensive range of software applications and solutions with a focus on meeting the rapidly growing IT needs of the financial services institutions in China. Longtop is the highest ranked Chinese financial technology provider on the Global FinTech 100 survey of top technology partners to the financial services industry. Independent research firm IDC has also named Longtop the No.1 market share leader in China's Banking IT solution market and the No.2 market share leader in China's Insurance IT solution market in calendar year 2008. Headquartered in
For more information, please visit: http://www.longtop.com .
For more information, please contact:
For Investors:
Longtop Financial Technologies Limited
Charles Zhang, CFA
Tel: +86-10-8421-7758
Email: [email protected]
For Media:
IR Inside
Caroline Straathof
Tel: +31-6-54624301
Email: [email protected]
SOURCE Longtop Financial Technologies Limited
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