Spike CyberWorks will receive an $11 million cash injection from Hong Kong based financial and technology services firm techpacific.com Limited.techpacific.com will acquire the 30 per cent shareholding in Spike presently owned by Hong Kong listed Pacific Century CyberWorks (PCCW) in an effort to strengthen its e-services arm, tp Factory. It will also subscribe for newly issued shares to bring its total shareholding in the Internet company to 51 per cent.
Since restructuring its business unit in early November Spike CyberWorks has been keen to break into the Asian markets. The deal will serve as a platform for both partners to significantly scale their businesses in the region.
"The injection of capital resulting from the partnership [with techpacific.com] will allow Spike to continue to build its leading digital services business in Asia," says John McGuigan, executive chairman of Spike. "In addition we are delighted to be maintaining our involvement with the Pacific Century CyberWorks group through its continued shareholding in Spike."
In exchange for its 30 per cent shareholding PCCW will receive new shares of techpacific.com, thereby maintaining an indirect interest in Spike.techpacific.com's tp Factory e-services arm, one of four key businesses sectors, has been exploring ways to grow organically and through acquisition for sometime according to Johnny Chan, chief executive officer of techpacific.com.
"The proposed deal with Spike CyberWorks, which has a strong presence in the promising Australian and Japanese markets will serve as a platform to significantly scale our business regionally and allow us to gain immediate access to a region wide multinational client base," says Chan.
"At the same time, I am delighted that PCCW will become an important shareholder. Both techpacific.com and our entire network of invested partners will benefit from PCCW's experience in the technology sector."techpacific.com is not associated with Hagemeyer's distribution arm, the Tech Pacific Group.