Beijing-based AsiaInfo Holdings will acquire telecommunications-software competitor Linkage Technologies International Holdings in a cash-and-stock deal worth US$733 million, as reported by Wall Street Journal. AsiaInfo President Steve Zhang said that the acquisition is intended to help the firm sell more products into China Telecom, the country's second-largest telecom provider. AsiaInfo was originally focused on selling to China Mobile, while Linkage concentrated on China Telecom. The new enterprise will provide software and services like billing systems and customer relationship management tools to China's telecommunications giants. According to Goldman Sachs, AsiaInfo held 12% of the Chinese market for telecom IT services, while Linkage held 11%. Competitor Huawei Technologies had 14%.
We have very complementary customer bases. AsiaInfo's traditional strength is with China Mobile, and Linkage's traditional strength is with China Telecom," Steve Zhang said.
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