Spike drives further into Hong Kong
- 13 June, 2001 17:23
Internet services company Spike Networks announced last week that its joint venture with techpacific.com, Spike CyberWorks, will acquire an interest in two Hong Kong-based businesses. These include a 35 per cent interest in Web site developer SoftPub.com for $US1.4 million and a 45 per cent interest in software developer Linux Center Limited for $590,000.
"As a result of the prevailing market environment, Spike CyberWorks' earlier expectation that it would achieve an operating cashflow break-even result by the June quarter of financial year 2001 will not be met," said Spike Networks' executive chairman, John McGuigan.
"Nevertheless, we are confident
that under Peter Williamson's [CEO of Spike CyberWorks] leadership, Spike CyberWorks will be well positioned to capitalise on opportunities in the Asian region."
Under the terms of the transaction, Spike CyberWorks will acquire a 35 per cent interest in SoftPub from techpacific.com (BVI) Investments, a wholly owned subsidiary of techpacific, for $1.4 million.
Spike CyberWorks will acquire a 45 per cent interest in Linux Center from techpacific (BVI), Applied Research Council ("ARC") and Nirvana at an aggregate value of $590,000.
"These additions to our corporate portfolio will enhance our already impressive capabilities in the digital and e-enablement services markets in the Asia-Pacific region," said Williamson.
"We anticipate the synergies these companies will bring to our current activities will be very valuable."