Frontline Buys Into Thai IT Services Firm
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SINAPORE -- Singapore Mainboard-listed Frontline Technologies Corporation Ltd. has invested US$7.18 million in Thailand-based Logic Company Limited to expand into the Asia Pacific region.
Frontline president and chief executive officer Lim Chin Hu said, "This investment in Logic allows us to enter into a strategically important alliance with one of Thailand's largest IT solutions providers, solidifying our position as the premier IT services company in the Asia Pacific region.
"We are particularly impressed with the boundless synergies between Frontline and Logic. For one, our businesses are very much alike, and we share a common stable of world-class technology partners like Sun Microsystems, Oracle Systems and Veritas Software.
"This provides tremendous scope for a seamless integration and sharing of resources, and collaboration for large-scale regional projects. The highly-experienced management team of Logic has also been steering the company in a direction that is largely in line with the growth vision of Frontline."
Apart from its 30 percent stake in the Thai company, Singapore-headquartered Frontline also has operations in China. Lim added that Frontline's growth strategy for the next two years would be to acquire, invest in and form joint ventures with "promising IT services companies with substantial complementarities in the Asia Pacific region." The company would also focus on organic growth and "integrating and strengthening the businesses that we already have."
Founded in 1989, Logic is a major player in Thailand's IT industry, providing client/server computing systems and network-related infrastructure products and services. It offers systems design and integration, and professional training services via its staff of 260 people.
Said Nart Liucharoen, executive director of Logic, "We seek a value-added investor in Frontline. This investment will help us strengthen our regional competency, extend our client base, and enhance our technical expertise. As Singapore is fast becoming the IT hub in the region, we look forward to tapping on the vast industrial linkages in Singapore through Frontline."
Noteworthy Logic customers include Seagate Technology, Siam Cement Public Co. Ltd., Advanced Info Service Ltd., Telecoms Asia Ltd., Total Access Communications Ltd., and The Petroleum Authority of Thailand.
For the financial year ended Dec. 31, 1999, Logic had revenues and operating profit before tax of approximately US$17 million and US$996,000, respectively. For the financial year ended Dec. 31, 2000, Logic had unaudited revenues and operating profit before tax of approximately US$25 million and US$1.6 million, respectively.