VanceInfo Announces $40M Share Repurchase Plan; Acquisition of Oracle Consulting Firm

VanceInfo Technologies Inc. VIT today announced that its Board of Directors has approved a share repurchase program, effective March 2011. Under the program, VanceInfo has been authorized, but is not obligated, to repurchase up to $40 million worth of outstanding American Depositary Shares (ADSs) representing the ordinary shares of VanceInfo from time to time over the next 12 months, depending on market conditions, share price and other factors, as well as subject to the relevant rules under US securities regulations. The share repurchase program will be funded by the Company's 2011 free cash flow as well as existing working capital. As of December 31, 2010, the Company had cash, cash equivalents and marketable securities of approximately US$181.7 million. In early March 2011, VanceInfo acquired 100% equity interest in Bright Consulting (Beijing) Limited, a China-based IT services company providing Oracle consulting and implementation services to Chinese domestic clients. Under the terms of the acquisition agreement, VanceInfo will pay an initial consideration of approximately $0.7 million in cash and stock.