Benzinga | Dec 29, 2020 08:04AM EST

CLPS Incorporation Acquires Remaining 20% Ownership Stake Of Ridik

HONG KONG, Dec. 29, 2020 /PRNewswire/ -- CLPS Incorporation (NASDAQ:CLPS) ("CLPS" or "the Company"), today announced that, through its indirectly wholly owned subsidiary, CLPS Technology (Singapore) Pte. Ltd., it has acquired the remaining 20% ownership stake in Ridik Pte. Ltd. ("Ridik"), a Singapore-based IT services company in which CLPS initially acquired 80% equity in September 2019. As a result, Ridik is now a wholly owned subsidiary of CLPS.

CLPS has achieved significant growth in the Southeast Asia market since the initial acquisition of Ridik. For the year ended June 30, 2020, revenue generated from Singapore increased by 191.8% to $7.37 million compared to the previous year period. With Ridik's financial growth contribution and business development potential, it will further drive the Company's global expansion strategy, including healthier overseas financial performance.

Following the completion of Ridik acquisition, CLPS plans to set up Singapore as its Southeast Asia headquarters, which will serve as the springboard for market expansion and business development opportunities in the region.

Mr. Srustijeet Mishra, Chief Executive Officer of CLPS SEA Region, commented, "We have achieved significant progress in the Southeast Asia market since our partnership with CLPS and we are looking forward to strengthening our business performance and relationship with the Company as a wholly owned subsidiary. Being fully absorbed by CLPS, we will be on a better position to leverage its resources and industry expertise to grow and expand our business and client base not only in the Southeast Asia, but also in other parts of Asia Pacific region."

Mr. Henry Li, Chief Operating Officer of CLPS, added, "Southeast Asia has been an important market in CLPS's global expansion strategy. As a wholly owned subsidiary, Ridik will enable us to fully integrate our business in Southeast Asia, which will further advance our business expansion in the global market. In addition, we are committed to investing for resources, such as technological and management innovation, enhanced overseas business model, and value-added services to our existing and potential clients. Our streamlined plan will put us in a strategic position to deliver efficient and quality services and achieve client satisfaction in the Southeast Asia region."

Further information about CLPS's initial acquisition of Ridik's 80% equity was disclosed in the press release dated September 27, 2019:

https://www.prnewswire.com/news-releases/clps-incorporation-further-expands-into-southeast-asia-market-with-acquisition-of-ridik-300926782.html