Brightpoint to create Malaysian joint venture with STC Group
Brightpoint has announced that its subsidiary, Brightpoint International (Malaysia) Sdn. Bhd. (Brightpoint Malaysia), has entered into an agreement with STC Partners Sdn. Bhd. (STC) to create a joint venture in Malaysia and purchase certain assets of STC. The joint venture, which will be operated through Brightpoint Malaysia, will provide wireless device distribution and logistics services to manufacturers, operators and retailers in the Malaysian market. Brightpoint will own 60% of the joint venture and STC will own 40%.
Brightpoint Malaysia will, in exchange for the assets that comprise the ongoing Malaysian wireless business of STC, pay RM18.9m (approximately US$6.1m) to STC and transfer 40% ownership of Brightpoint Malaysia to STC. In addition, Brightpoint Malaysia will purchase the fixed assets and inventory held by STC. Brightpoint Malaysia has agreed to pay to STC contingent cash earn-out payments, subject to the achievement of certain operating performance measures, which may be payable after the anniversary of closing through each of the first five operational years. The aggregate earn-out payments shall in no event exceed RM35.1m (approximately US$11.3m) and the amount paid for STC's fixed assets and inventory is currently not anticipated to exceed RM15m (approximately US$4.9m)."We are excited to partner with STC and extend Brightpoint's presence in Asia Pacific to the Malaysian market," stated Bruce Thomlinson, Brightpoint's President, Asia Pacific. "STC is an ideal strategic partner and we believe that this transaction will allow us to extend our in-country capabilities along with relationships with leading manufacturers and operators and further leverage our capacity and ability to offer cost effective solutions, in Malaysia."