3i Infotech ties-up with Yucheng Technologies to enter China
19 Feb 2008
3i Infotech Ltd has signed a non-binding memorandum of understanding (MOU) with Chinese IT solutions and services provider to banks and financial services companies Yucheng Technologies Ltd, to set up a 51:49 joint venture in China.
The signing of the agreement marks 3i Infotech's entry into the high-growth Chinese market.
3i Infotech finds considerable similarity between the market dynamics in India and China and expects to combine its software products and IT services with the customer relationships of Yucheng to provide products and services to BFSI entities in China.
Yucheng Technologies Ltd., headquartered in Beijing, China, is a NASDAQ-listed company with more than 1,700 employees and has established an extensive footprint to serve its banking clients nationwide with subsidiaries and representative offices in eleven cities.
The Chinese company provides a comprehensive suite of IT solutions and services to Chinese banks in areas such as web banking and call centres, foreign exchange and treasury management, risk analytics and business intelligence. It is also a third party provider of point of sales merchant acquiring services in partnership with banks.
"3i Infotech has a long standing tradition of entering markets with a high growth potential," said V Srinivasan, managing director and CEO, 3i Infotech. "The Asian markets in particular are of keen interest to us, given the huge growth potential that they offer."
Srinivasan added, "With Yucheng's focus on and deep knowledge of the banking industry in China and its dynamics, the synergies between their business goals and those of 3i Infotech made them a natural choice for our foray into China. We look forward to a long and fruitful relationship with them."
Rajiv Malhotra of New Delhi-based Innovative Solutions acted as advisor to both companies.
3i Infotech is one of the top four Indian software product companies (Dataquest July 2007).
