Intel plans to invest US$40 million in Neusoft Group as part of a deal that will see the Chinese software vendor optimize its products for Intel microprocessors.
The deal, announced Tuesday, marks the largest investment to date made by the US$200 million Intel Capital China Technology Fund, Intel said. The deal is subject to regulatory approval, it said.
Based in Shenyang, Neusoft runs one of China’s largest IT training programs and provides outsourced software-development services for embedded applications, counting a large number of Japanese companies among its clients. In addition, Neusoft offers its own range of software products, including business management and human resources applications.
In addition to the announcement of Intel’s investment in Neusoft, the two companies announced an agreement that will see the companies cooperate more closely. Under the terms of that agreement, Neusoft and Intel will jointly develop the curriculum for a university-level education and certification training program for Intel architecture and tools. The curriculum of the program will focus on several industries, including manufacturing, medical equipment, home appliances and control systems, as well as other embedded applications.
Intel is not the first multinational vendor to team up with Neusoft. Earlier this year, SAP AG took a minority stake in Neusoft as part of an agreement to expand the cooperation between the two companies. SAP did not disclose the size of its investment in Neusoft.
Established in 2005, the Intel Capital China Technology Fund is the first created by Intel to specifically invest in Chinese technology companies.
Other companies that the fund has invested in include Campus Media, which runs an advertising network in university cafeterias across China; chip-designer Montage Technology; Star Softcomm, which designs PC management software; and Winking Entertainment, a developer of software for 3D online games.
-Sumner Lemon, IDG News Service (Singapore Bureau)
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