SiS International Holdings has agreed to divest its core information technology distribution business and sell it for US$130 million to rival Jardine OneSolution, a part of Hong Kong-based trading conglomerate Jardine Matheson Group.
The cash transaction, which is expected to be completed early next year, would transform JOS into one of the largest and fastest-growing information technology services companies in Asia.
The acquisition covers SiS' information technology distribution operations in Hong Kong, Singapore and Malaysia.
In a filing yesterday with the stock exchange of Hong Kong, SiS said the net proceeds from the disposal will be used to settle bank loans, expand the company's mobile phone products and solutions distribution operation, develop its so-called distributed management services, and future investments.
As part of their deal, SiS also agreed to provide certain management services to JOS for two years at a fixed monthly fee of HK$450,000 and annual bonuses that range from HK$1.68 million to HK$6.3 million.
Founded in 1983, SiS represents some of the world's most renowned technology brands, including Cisco Systems, IBM, Lenovo Group, Hewlett-Packard, Symantec, Canon, Fuji Xerox and Microsoft.
SiS chairman Lim Kia Hong said the disposed business 'requires a different structure, resources, and finance to take it to the next stage of growth'.