SAP will also take a minority equity stake in the Neusoft Group. Terms of the all-cash transaction were not disclosed. In addition, SAP China, a subsidiary of SAP AG, signed a separate agreement with Neusoft under which Neusoft will expand its training offerings for SAP software in China. Together, the agreements will deepen the relationship between the two companies, further extend training and solution offerings for SAP customers in China, and establish Neusoft as an important SAP training and development center in China. The agreements are the latest in a series of steps extending SAP’s operations in China and expanding its ability to serve Chinese customers and partners across the country.
The relationship and investment agreements were announced and signed by SAP CEO Henning Kagermann and Neusoft Chairman and CEO Prof. Dr. Liu Jiren at a ceremony conducted as part of the official activities surrounding German Chancellor Angela Merkel’s visit to China. The ceremony was attended by both Chinese Premier Wen Jiabao and Chancellor Merkel. Neusoft operates one of China’s largest and best-known IT training academies and software outsourcing businesses, and has strong experience in a range of vertical industries, including utilities, finance, manufacturing, telecommunications, education and e-government.
Under its expanded relationship with SAP, Neusoft will launch a dedicated SAP practice, expand its SAP training program and its development of solutions based upon the SAP Best Practices family of software offerings, and will evaluate and adopt SAP NetWeaver as a software development platform for selected enterprise applications. Over the next two years, Neusoft will more than triple its staff dedicated to SAP software and training and draw upon its deep university ties and nine dedicated training centers to train and certify a growing number of SAP customers, partners and independent consultants. Neusoft will also expand its existing value-added reseller (VAR) partnership for mySAP All-in-One solutions in China, and will develop and distribute micro-vertical solutions built upon SAP Best Practices and designed for small and midsize enterprises in China’s manufacturing industries.
“China’s economic dynamism is encouraging companies here to look for new ways to improve performance and develop the agility they need to succeed in the world’s fastest-changing marketplace,” said Henning Kagermann, CEO, SAP AG. “This cooperation will bring together SAP’s technology and Neusoft’s nationwide network to offer China’s businesses better access to IT training and solutions that can enable them to stay competitive and seize global opportunities no matter where in the country they are located.” SAP expects demand for resource planning (ERP) applications in the Chinese market to continue to grow over the next several years, with much of that growth driven by China’s vibrant small and midsize businesses.
SAP and Neusoft partnership builds on a solid foundation
The new agreements between SAP and Neusoft deepen a cooperation that started in 2000. Neusoft already has deep knowledge of the SAP product line and customer life cycle, and will be able to extend that expertise into new areas by working with SAP to incorporate new SAP technologies powered by SAP NetWeaver into its solutions. “We believe that software is becoming an integral part of society and daily life, and that this is changing the way companies in China operate,” said Neusoft Chairman and CEO Prof. Dr. Liu Jiren. “As Chinese small and medium-sized businesses become more aggressive users of ERP technology, we see opportunities for expanded training and solution offerings in several industries. Our relationship with SAP will help us to make the most of those opportunities and deliver powerful solutions to customers across the country.”
Founded in 1991 and based in Shenyang, China, Neusoft has deep expertise in ERP and strong, nationwide distribution channels with over 8,000 employees and operations in forty locations across the country. It also maintains offices in the United States and Japan, as well as industrial development bases in the Chinese cities of Shenyang, Dalian, Chengdu and Nanhai. The company’s core businesses include software and solutions, outsourcing, IT education and training and medical systems.
SAP at the forefront of Sino-German business ties
Chancellor Angela Merkel’s visit to China, her first since becoming Germany’s head of government in November 2005, underscores the deepening trade and commerce relations between Germany and China. SAP has been a pioneer of modern business links between the two nations, with cooperation with Chinese enterprises beginning in the 1980s and regular operations in China since 1995. SAP established a research laboratory in China in 1997 and upgraded it to a world-class SAP Labs facility in 2003. A further significant expansion of its China-based research facilities was announced in March 2006. SAP remains committed to developing its business in China and to creating opportunities for its Chinese customers, partners and employees.