AsiaInfo Holdings, Inc. (ASIA) and Linkage Technologies International Holdings Limited Sunday said they signed a definitive agreement to merge, forming AsiaInfo-Linkage, Inc.
As per the agreement, Linkage shareholders will receive US$60 million in cash and about 26.8 million AsiaInfo shares upon closing of the transaction. Based on the closing price of AsiaInfo's stock on December 4, the combined company would have a market value of over US$1.8 billion.
Post-transaction, Linkage's legacy shareholders will own about 35.8% of AsiaInfo-Linkage with AsiaInfo's legacy shareholders owning nearly 64.2%. The transaction is expected to be accretive to non-GAAP earnings per share in 2010.
The deal is expected to close by the end of the first quarter or early in the second quarter of 2010.
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