Longtop Signs Agreement to Acquire FNDSoft, a Leading Core Insurance Solution Provider in China
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HONG KONG, March 15, 2011 - Longtop Financial Technologies Limited ("Longtop") (NYSE: LFT), a leading software developer and solutions provider targeting the financial services industry in China, today announced that the Company has entered into a definitive agreement to acquire 100% of FNDSoft, a leading provider of core insurance solutions for property Insurance companies in China.
Founded in 2006 and headquartered in Shanghai, FNDSoft was one of the first companies in China to develop core insurance software and solutions for property insurance companies in China. The company is headquartered in Shanghai with branch offices in Beijing and Guangzhou, and a team of 150 employees, of whom 140 are technical personnel. The acquisition is expected to close prior to March 31, 2011 and not be material to the financial results.
The company's core insurance applications, which are built on its own proprietary Insurance Enterprise Suite platform, are widely deployed by some of the leading insurance companies in China. These applications include an automobile claims management system; an insurance payments and receipts management system; a centralized Property and Casualty ("P&C") underwriting system; a P&C insurance acceptance system; a payments & receipts engine; P&C insurance acceptance and claims engines; and an insurance rule engine.
"We believe core insurance represents the most important market opportunity in the fast growing insurance IT solution market. FNDSoft's products and technology are highly complementary to our core insurance solution portfolio, and with the acquisition we bring a wealth of industry knowledge and technical expertise in-house to further strengthen our core insurance capabilities, which are critical for increasing our market share in this segment," said Weizhou Lian, Chief Executive Officer of Longtop.
According to the IDC China Insurance Industry IT Solutions 2010-2014 Forecast and Analysis, the overall market for insurance industry solutions is expected to grow at a CAGR of 21.3% from 2010-2014. In 2009, core insurance accounted for 48.3% of the overall market, according to IDC.
About Longtop Financial Technologies Limited
Longtop is a leading software development and solutions provider targeting the financial services industry in China. Longtop develops and delivers a comprehensive range of software applications and solutions with a focus on meeting the rapidly growing IT needs of the financial services institutions in China. Longtop is the highest ranked Chinese financial technology provider on the Global FinTech 100 survey of top technology partners to the financial services industry. Independent research firm IDC has also named Longtop the No.1 market share leader in China's Banking IT solution market and the No.2 market share leader in China's Insurance IT solution market in calendar year 2009. Headquartered in Beijing, Longtop has six solution delivery centers, three research and development centers and 95 ATM service centers located in 27 out of 31 provinces in China.
SOURCE Longtop Financial Technologies Limited
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