Feb 21, 2013 ITOCHU Techno-Solutions Corporation
ITOCHU Techno-Solutions Corporation (head office: Chiyoda-ku, Tokyo; President & CEO: Satoshi Kikuchi; hereinafter "CTC") announces that it has reached a definitive agreement with a major US global IT services company, Computer Sciences Corporation, to acquire 100% of shares of CSC Automated Pte. Ltd.
(hereinafter "CSC Automated") of Singapore and CSC ESI Sdn Bhd (hereinafter "CSC ESI") of Malaysia, both of which are IT service providers and subsidiaries of Computer Sciences Corporation, jointly with ITOCHU Corporation, making them its subsidiaries. The total acquisition price is 90 million US dollars (with CTC contributing 63 million US dollars).
1. Reasons of the acquisition
One of the growth strategies in the CTC's Medium-Term Management Plan is to expand its global operations. Through the investments in CSC Automated and CSC ESI, which have customer bases in Singapore and Malaysia, respectively, as well as technological capabilities, CTC will establish operating bases in the ASEAN region, where high growth in the IT market is expected. CTC aims to create synergies to expand its consolidated earnings.
2. Profiles of subsidiaries to be acquired
1) CSC Automated Pte. Ltd. (Singapore)
| Name | CSC Automated Pte. Ltd. |
|---|---|
| Head Office | 20 Anson Road #11-01 Twenty Anson Singapore 079912, Singapore |
| Business Lines | Reselling hardware and software and providing maintenance service to business customers |
| Paid-in Capital | S$ 2,000,000 |
| Established | August 1972 |
| Major shareholders and ownership | CSC Asia Holdings Pte. Ltd. 100% |
| Number of Employees | Around 100 |
2) CSC ESI Sdn Bhd (Malaysia)
| Name | CSC ESI Sdn Bhd |
|---|---|
| Head Office | Level 21, Suite 21.01, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, Malaysia |
| Business Lines | Reselling hardware and software and providing maintenance service to business customers |
| Paid-in Capital | RM 2 |
| Established | January 2013 (established as a result of the spin-off of the ESI division of CSC Malaysia Sdn Bhd) |
| Major shareholders and ownership | CSC Malaysia Sdn Bhd 100% |
| Number of Employees | Around 600 (employees for the ESI division of CSC Malaysia Sdn Bhd) |
3. Profile of the company selling the shares
| Name | Computer Sciences Corporation |
|---|---|
| Head Office | 3170 Fairview Park Drive, Falls Church, Virginia 22042, USA |
| Representative | Mike Lawrie (President & Chief Executive Officer) |
| Business Lines | IT Servises |
| Paid-in Capital | US$ 162 mil |
| Established | April 1959 |
4. Share ownership before and after the acquisition
1) CSC Automated Pte. Ltd. (Singapore)
| Number of shares owned before the transfer | 0 shares (percent owned -%) |
|---|---|
| Investment percentage following the acquisition | ITOCHU Techno-Solutions Corporation 70% ITOCHU International Inc. 30% |
2) CSC ESI Sdn Bhd (Malaysia)
| Number of shares owned before the transfer | 0 shares (percent owned -%) |
|---|---|
| Investment percentage following the acquisition | ITOCHU Techno-Solutions Corporation 70% ITOCHU International Inc. 30% |
5. Impact on future business results
The acquisition of the shares will be completed before the end of March 2013. The effect of the creation of the new subsidiaries on CTC's consolidated earnings for the fiscal year ending March 2013 is minor.
Contact Information
ITOCHU Techno-Solutions Corporation, Corporate Communications Dept.
E-mail：press@ctc-g.co.jp
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