Pansoft Company Limited, a British Virgin Islands-registered provider of ERP software and professional solutions for oil and gas industry in China, has signed an agreement to acquire all of the equity interests of Hefei Langji Technology Co., Ltd. and its wholly-owned subsidiary, Shanghai Zhongrui, on September 9, 2011. The total purchase price of the company, which is approximately US$1.69 million, is payable in four installments. The first installment will represent 35% of the total purchase price, and will be paid in a combination of cash and the common stock of the BVI company; the three other installments are required to be paid on an annual basis over the next three years in a combination of cash and the common stock of the company.
One of the companies acquired by Pansoft, Hefei Langji Technology, is the leading HR solution provider to China’s coal-mining industry. Shanghai Zhongrui is Shanghai-based sales and marketing arm of Langji. It will remain Langji’s subsidiary and will focus on small and medium-sized companies in other industries.
A part of the acquisition consideration will be paid from shares repurchased by Pansoft on the open market. As of September 15, 2011, Pansoft had repurchased more than 157,000 of its common shares, which will be used to fund the acquisition.