It was announced yesterday that Intel Corp had agreed to invest
US$40 million in Neusoft Group Ltd, a leading Chinese software and
solutions provider, to help it strengthen its presence in the
health care and finance development of the software market.
The investment is the largest yet by the US$200 million Intel
Capital China Technology Fund launched by the company last year to
invest in Chinese technology companies developing innovative
hardware, software and services, according to Arvind Sodhani,
president of Intel Capital, the company's venture investment
arm.
The two companies also signed a business cooperation agreement
to further their strategic ties in software and hardware
integration, education and training. The tie-up allows Neusoft to
build a Solution Performance Optimization Competency Center based
on Intel's architecture and platforms to enhance their research and
cost-cutting capabilities.
Liu Jiren, chairman and CEO of Neusoft Group said yesterday,
"The cooperation with Intel will help Neusoft enhance its self
innovation capability and enable Neusoft to provide better products
and solutions in line with international norms for customers as
well as driving the development of China's software industry."
He told China Daily the agreement paved the way for
further cooperation especially in the digital health care
market.
Neusoft, founded in 1991, is one of the China's largest
suppliers of software solutions for the health care market and
reportedly has around 3,000 hospital clients. In total Neusoft had
more than 8,000 corporate customers in China, according to company
president Wang Yongfeng.
Neusoft is a specialized vendor of solutions, digital products
and services with expertise in software technologies. A
Neusoft-featured business model has been established with the
integration of software and industry application, combination of
software and digitalized products, cultivation of talents in
software and consultation services.
"Digital health is a new market for Neusoft and Intel and I
believe our efforts will help improve health care and make
breakthroughs in the field," said Liu.
Intel, the chip maker, established the Digital Health Platforms
Group last year to apply its technologies to the global health care
business.
Renee James, vice president of Intel Corp and general manager of
Intel's Software and Solutions Group said yesterday, "The
cooperation with Neusoft will benefit both Intel and Neusoft in
digital healthcare. It will help Neusoft shorten its research and
development cycle and improve its global marketing backed by
Intel's core technology and global marketing capabilities."
She said Intel would assist Neusoft, one of the China's largest
software exporters, distribute its products across the world
through Intel's sound global sales networks.
Market analysts said Neusoft's union with Intel Corp highlighted
its tactic of expanding in the domestic and global markets through
forging partnerships with multinational IT companies.
In May Neusoft agreed to sell around 3 percent of its stake to
SAP China, a subsidiary of Germany-based software and solutions
provider SAP AG, for 10 million euros (US$12.8 million). SAP China
also signed a separate agreement with Neusoft under which Neusoft
will expand its training offerings for SAP software in China.
Neusoft will develop and distribute micro-vertical solutions
built upon SAP Best Practices and designed for small and mid-sized
enterprises in China's manufacturing industries.
(China Daily September 27, 2006)