ITOCHU Techno-Solutions Corporation (head office: Chiyoda-ku, Tokyo; President & CEO: Yoichi Okuda; hereinafter, "CTC") has announced the signing of a joint venture agreement with Netband Consulting Co., Ltd (head office: Bangkok, Thailand; Managing Director: Sompong Dechagorn; hereinafter, "Netband") and its majority shareholder Vnet Capital Co., Ltd. (head office: Bangkok, Thailand; President: Sopon Boonyaruttapunth; hereinafter, "Vnet"), in which CTC will take an equity stake in Netband, expanding CTC's business in Southeast Asia. Capital injection transaction is expected to be completed on July 16th. Under the agreement, Vnet will own 55% of Netband and CTC will own 45%. CTC is committed to developing its business activity in Thailand.
1. Purpose of capital participation
CTC has for years been sourcing the leading IT technologies and solutions for the Japanese market to meet the needs of its clients through partnership with leading global IT players. With global expansion now a key growth strategy, as set out in the Medium-Term Business plan announced in April, 2010, CTC established a Singapore branch in April 2011. This was followed by the acquisition of ITOCHU Techno-Solutions America, Inc, which become a subsidiary in April 2012 and gave CTC presences in the heart of Silicon Valley and in New York City. These developments have bolstered the support structure that CTC offers Japanese clients overseas.
Like CTC, Netband has a proven track record of delivering system development and selling the products of leading overseas IT players to major Thai clients. CTC decided to invest in Netband based on the continued growth expected in the Thai market and with the aim of accelerating CTC's business development in Southeast Asia by applying CTC's cutting-edge technical strength to Netband's business.
2. Future Strategy
Infrastructure technologies such as virtualization, networks, and cloud services will be transferred to Netband by CTC and jointly marketed to high growth industries. CTC also values the presence of Japanese manufacturers such as automakers, electrical goods makers, and electronics manufacturers, and will bolster its structure to meet their needs.
CTC continues to seek other opportunities in Asia as it expands its global business network.
3. Company Profiles
1) Netband Consulting Co., Ltd.
|Name||Netband Consulting Co., Ltd.|
|Head Office||159/22 Serm-Mit Tower, Unit 1404 14th Fl Sukhumvit 21 Rd., North Klongtoey Wattana, Bangkok, Thailand|
|Paid-in Capital||30 million baht|
|Business Lines||Sales, installation and implementation of IT systems and networks; on-site support services; outsourcing services; other|
2) Vnet Capital Co., Ltd.
|Name||Vnet Capital Co., Ltd.|
|Head Office||159/21 Serm-Mit Tower, Unit 1401 14th Fl Sukhumvit 21 Rd., North Klongtoey Wattana, Bangkok, Thailand|
|Paid-in Capital||20 million baht|
|Business Lines||Business investment; post acquisition management; venture capital and private equity businesses. Founded by Narong Intanate and Associates|
3) ITOCHU Techno-Solutions Corporation
|Name||ITOCHU Techno-Solutions Corporation (CTC)|
|Head Office||3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6080 Japan|
|Paid-in Capital||21,763 million yen|
|Business Lines||Sales, maintenance and support of computers and network systems; commissioned software development; information processing services; information services related to science and engineering; support; other|
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