Northgate Technologies, an India-based company with interests in online advertising and voice-over-internet protocol (VoIP) services, is eyeing acquisitions worth up to HK$1 billion in Greater China over the next two years to help drive its global expansion.
Managing director and chief executive Venkat Meenavalli said Northgate would pursue a mix of acquisitions and partnerships in the mainland, Hong Kong and Taiwan to reach the fast-growing population of broadband internet and mobile-telephone users in these markets.
'We know what services these markets offer and what they lack. With our infrastructure and our new base in Hong Kong, we have the opportunity to quickly grow our business in Asia-Pacific,' he said.
He said Northgate, with a market capitalisation of about US$350 million and 200 staff to date, was studying potential 'good acquisitions' involving Hong Kong-listed firms, which could mean an investment of HK$500 million to HK$1 billion.
'We plan to use Hong Kong as a hub for expansion in the internet and online gaming sectors,' he said. 'In Hong Kong, we have invested about US$3 million. Investments worldwide will be roughly US$15 million, including an increase in capacity of our server farm in Britain.'
Northgate, through its VoIP application subsidiary Globe7, last month set up shop in Cyberport with 14 staff to launch its internet telephony services in Hong Kong.
Globe7 has introduced two USB phones - the Globe7 wireless internet phone and the Globe7 internet storage phone - that form part of a hardware and software package providing one-year unlimited calling to 25 designated countries for a one-time payment of about HK$800 and HK$999 respectively.