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Citic Telecom in quest for more strategic acquisitions

Global operations expand after the takeover of Acclivis in Southeast Asia and Linx in Europe

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Xin Yuejiang, chairman of Citic Telecom, said recent acquisitions have transformed it into a global corporate services provider. Photo: Nora Tam
Bien PerezandViola Zhou

Citic Telecom International Holdings, a subsidiary of China’s largest conglomerate, plans to pursue more strategic acquisitions and alliances after reporting a moderate rise in profit last year.

“We will not stop looking for opportunities to acquire foreign companies and form partnerships,” Citic Telecom chairman Xin Yuejiang said at a press conference on Monday.

Xin said the company’s recent acquisitions have helped it transform into a global corporate services provider, which is poised to accelerate its cloud and data centre operations.

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That expansion will be mainly anchored around the company’s two recent acquisitions, Singaporean cloud computing services provider Acclivis Technologies and Solutions, and the European network infrastructure business of Netherlands-based Linx Telecommunications.

Cloud computing enables companies to buy, sell, lease or distribute online a range of software and other digital resources as an on-demand service, just like electricity from a power grid. These resources are managed inside data centres. “Cloud” refers to the internet as depicted in computer network diagrams.

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“The landscape of our corporate business has changed dramatically after we acquired Linx and Acclivis,” Citic Telecom chief executive Lin Zhenhui said.

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