Longtop Signs Agreement to Acquire FNDSoft, a Leading Core Insurance Solution Provider in China

HONG KONG, March 15, 2011 /PRNewswire-Asia/ -- 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.  

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as ''believes,'' ''expects,'' ''anticipates,'' ''intends,'' ''estimates,'' the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include the effectiveness, profitability, and marketability of the company's solutions; the Company's limited operating history; its reliance on a limited number of customers that  continue to account for a high percentage of the Company's revenues; risk of payment failure by any of its large customers, which could significantly harm the Company's cash flows and profitability; the ability of the Company to operate effectively as a public company; future shortage or availability of the supply of employees; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Any projections in this release are based on limited information currently available to us, which is subject to change.

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

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED