MYOB products have been sold in Asia for almost 10 years and MYOB has been servicing the growing Chinese SME market through its Hong Kong operation since 2000. The joint venture with Jin Cai extends MYOB's Asian operation into mainland China through an existing enterprise.
MYOB is investing $2 million to attain a 95% shareholding in Zhi Guan Technology, the joint venture company, including around $1 million of deferred consideration should performance hurdles be achieved over the two year period ending 31 December 2007.
The joint venture company will acquire the existing Jin Cai business. MYOB will also receive an option to acquire the remaining equity in the joint venture company.
According to MYOB, a growing number of small-to-medium business owners in China are adopting computerized business management solutions.
MYOB will fund an investment in marketing and development for the business over the next three years in an attempt to build
a strong market position in mainland China.
MYOB CEO, Craig Winkler said, 'We've been evaluating the extension of our Hong Kong operation into mainland China for some time now, and researched our options thoroughly. We are pleased to be moving into the operational phase of taking on a new world of MYOB customers. MYOB's experience around the globe, coupled with the local knowledge of our partner and our wider Asian operations, puts us on a firm footing for long term success.'
MYOB intends to adapt its existing products for Chinese businesses. Bilingual English/Chinese MYOB software products are already available in Hong Kong today.