Insigma, Cisco Establish Cloud JV, Plan Overseas IPO
CNInfo, 9/07/12
Zhejiang-based IT services and software outsourcing provider Insigma Technology (600797.SH) issued a public filing today announcing that its Hangzhou-based systems integration subsidiary Qware Technology Group's Hong Kong subsidiary has signed an agreement with Cisco and Dorkai Information for overseas investment in joint venture City Cloud International. Through City Cloud International's Chinese subsidiary in Hangzhou, Qware will research, develop, and sell "Smart+Connected Communities platforms" (S+CC platforms) and cloud computing services based on the platforms within China. Cisco will fund two rounds of investment in City Cloud International with the goal of supporting the company on its way to an overseas IPO.
In the first round, Cisco will take a 20% share of the company, with Qware Technology (HK) and Dorkai Information each taking 40% shares. Should City Cloud International meet set performance targets, Cisco will follow up with a second round of funding, and additional investors might also join. The company may also issue reserved shares of common stock in order to bring on new technology, business, and staff. Following the second round of funding, City Cloud International stock will be divided such that Qware (HK), Cisco, Dorkai, external investors, and reserve shares of common stock each account for 20%.
Under the terms of the agreement, City Cloud International and affiliated companies must purchase no less than USD 36 mln of Cisco products within the first year following the signing of the agreement, growing to USD 81 mln or more in the second year. From the signing of the agreement to City Cloud International's IPO, Qware (HK) will partner extensively with City Cloud Technology (Hangzhou) on S+CC R&D and the development of cloud services based on the platform. Within 30 days of the signing, City Cloud Technology (Hangzhou) must sign contracts with clients totaling no less than RMB 50 mln in value.
Dorkai Information was registered in the British Virgin Islands on July 12, 2012 and is controlled by Deng Zequan and Wong Wai Ming, both employees of Qware Technology. Yu Qiang, vice president of the board at Insigma Technology and deputy chairman of Qware Technology, will also become a shareholder in Dorkai within the next 12 months.
Keywords: Qware Dorkai City Cloud International Deng Zequan hardware IPO funding overseas software software outsourcing Insigma Cisco cloud computing IT services JV R&D 600797.SH Yu Qiang Wong Wai Ming HR systems integration
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