KIRKLAND, WA (Oct 17, 2019) — iSoftStone Inc., a global information technology services and solutions provider offering end-to-end solutions for cities and enterprises to help improve processes and systems that enable a better quality of life, today announced that its Board of Directors has approved a plan to spin-off the Company’s World Wide Services division into a leading, standalone technology product and services company named AI Data Innovations, Inc. Transition of resources and technology is expected to be completed in the first quarter of 2020, while client engagement to transition contracts will continue through 2020. iSoftStone Inc. will maintain a minority stake in AI Data Innovations.
As standalone entities, both iSoftStone and AI Data Innovations are expected to benefit from:
• Strong management teams with a honed focus on their respective businesses and capital structures optimized to the unique characteristics of each business.
• A powerful partnership between the two companies allowing each to leverage the strengths of the other to expand business opportunities in the US, China and around the world.
• Distinct and expanding market opportunities and specific customer bases
• Separate boards of directors with skillsets and experience to provide focused insights and to support strategic and financial objectives and enhanced value creation.
• Company-specific incentive programs and performance indicators to most closely align employee incentive compensation opportunities with standalone business performance.
• Enhanced appeal to a broader set of investors suited to the particular strategic and financial characteristics of each business.
AI Data Innovations, the new entity, will continue to deliver best-of-class technology and services to global enterprise clients investing in Artificial Intelligence. As an independent entity, AI Data Innovations will be best positioned to accelerate the execution of its strategic plan, increase its market awareness, and broaden its client base. The business has several key competitive advantages including an experienced leadership team, a technology platform developed specifically for the needs of large technology enterprises, a flexible and global secure solution for the handling of private and sensitive data, penetration into developing and nascent industries, and a global workforce of 300,000+ people with coverage of over 100 languages and 200 markets.
STATEMENT FROM ISOFTSTONE
“As part of our continuing efforts to best position each business for long-term strategic and financial success, we identified an opportunity to unlock value through a separation of our two businesses”, said John Peng, Chairman of iSoftStone Inc. “As leaders in their respective markets, both iSoftStone and AI Data Innovations will be ideally positioned to benefit from a sharpened strategic focus on pursuing growth strategies best suited to each company’s end markets and strategic growth objectives. This will allow each company to deliver exceptional value to all its stakeholders, including clients, employees and shareholders.”
STATEMENT FROM AI DATA INNOVATIONS
“We are thankful to iSoftStone Group Chairman Mr. Tianwen Liu, iSoftStone Inc. Chairman Mr. John Peng, and the leadership at iSoftStone for the support they have shown throughout this process”, said Patrick Jarvis, CEO of AI Data Innovations. “Because of this generous support, AI Data Innovations is in the enviable position of being able to pursue new business opportunities as an independent entity while maintaining a strong, on-going partnership with iSoftStone.”
Posted on 25 March 2020 3:35PM PT.