HONG KONG - Asia Payment Systems Inc. is expected to buy strategic partner InterPay International Group Ltd.
According to a news release, in order to capitalize on the companies' potential and market opportunities, the two have decided to become one.
The purchase agreement is expected to lead to an expanded company that has ongoing revenue from established operations in Asia, while at the same time gaining and realizing opportunities in China and other emerging markets.
According to the agreement, InterPay can appoint two additional directors to the Asia Pay board, and InterPay's management team, information systems and operations will be integrated into one organization.
"Completion of the InterPay purchase will create a new and far stronger Asia Pay," said Robert Clarke, Asia Pay's outgoing chief executive officer and chairman. "We expect to show revenue growth and cash generation in 2006, which will be significantly higher than if Asia Pay were to continue to operate on our current basis."
"The acquisition of InterPay is expected to transform Asia Pay into a major player in the payment and loyalty cards industry in the Asian region within the foreseeable future," he added.
InterPay president and CEO KK Ng will become Asia Pay's president and CEO.
"We believe the combined strengths of InterPay and Asia Pay will lead to more rapid development of key markets which will enhance shareholder value," Ng said.
Read also, Asia Pay, InterPay International establish operations in Asia and Asia Pay president, CEO steps down.
