VietNamNet Bridge – Investment capital has continued to flow into the information technology (IT) sector via mergers and acquisitions (M&A) after a number of M&A transactions were announced over the past four months.

The most recent deal signed on April 23 is PeaceSoft Solution Corporation selling a 50% stake of the online payment site NganLuong.vn to MOL Access Portal Sdn. Bhd (MOL), a Malaysia-based electronic payment service provider.

Under the deal, MOL and PeaceSoft will jointly operate NganLuong.vn and other electronic payment services of PeaceSoft.

MOL has a large electronic payment system in the region dealing with over 60 million transactions and an annual payment volume amounting to over US$300 million. MOL is also developing a network of over 680,000 collection points in over 80 countries connecting to over 88 banks in ten countries.

Other deals announced are en-japan buying an 89.8% stake of Navigos and CareerBuilder buying a 100% stake of VON, owner of the online recruitment website KiemViec.vn and HRVietnam.com.

It is noticeable that with these deals, investors bought stakes over 50%. Regarding the software outsourcing, FPT Software Company and Japan-based AGREX have set up a joint venture specializing in Business Process Outsourcing (BPO).

Meanwhile, in the IT retail sector, a transaction to be announced this month is between an Asia investment fund and the retail chain Thegioididong.com after Mekong Enterprises Fund II reduced its capital in Thegioididong.com at the end of March.

Capital has continuously flown into IT thanks to high evaluations of experts about the potentials of Internet services in Vietnam.

Ganesh Kumar Bangah, general director of MOL, said that the opportunities for e-commerce and online payment in Vietnam were big. Vietnam is not only one of the fastest-growing markets but also one of the biggest Internet markets in Southeast Asia with over 31 million users, he added.

According to Chu Tien Dung, chairman of the HCMC Computer Association and chairman of Quang Trung Software City, the amount of capital poured into IT is rising, especially in the field of developing Internet services.

“Vietnam’s advantages are completed Internet infrastructure, a widespread 3G network and a huge domestic market with over 31 million Internet users. In addition, Internet services are at an early stage of development. These conditions are appealing to investors,” Dung said.

Source: SGT