AsiaInfo will merge with Nanjing-based software development firm Linkage Technologies in a cash and stock deal that will create a company with a market capitalisation of more than $1.8 billion.
Linkage shareholders will receive $60 million in cash and 26.8 million AsiaInfo shares as part of the deal and will end up owning 35.8% of the new company, while AsiaInfo shareholders will own 64.2%.
Steve Zhang, AsiaInfo's president and chief executive officer, will assume the same role for the merged entity, which will be called AsiaInfo-Linkage. The enlarged company's board of directors will comprise nine members, six from AsiaInfo's board and three appointed by Linkage's board.
AsiaInfo provides...
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