Formula Systems (FORTY)

[midastouch017]

Formula forms Chinese joint venture

By SHARON WROBEL

Herzilya-based Formula Telecom Solutions, a provider of billing and customer service software for telephone companies, has formed a joint-venture with the Chinese investment advisory group JPG in an attempt to become one of the top three players in the market.

"Entering the Chinese market is a strategic decision for FTS," said the company's CEO Amos Sivan. "This is a growing market with substantial opportunities. Furthermore, it complements our presence in the Asia Pacific Region."

As part of the joint venture, the JPI group will market and sell Formula's real-time business software solutions and billing services to the Chinese market.

"We are currently engaged with a number of Chinese service providers and have received very favorable feedback. However, given the long lead time customary in this market, we would expect to see meaningful revenues only after 18 months or so," Sivan said.

FTS, which listed on AIM in August 2005, raising $7.5 million, said it was working to adapt its product to the Chinese market in terms of language and functionality.

"Although not immediately, the joint venture will help us to become a meaningful player in the market, one of the top three. We also expect the Chinese government to be auctioning 3G contracts in the next 12 months, which is bound to increase the demand for billing services," Yair Sakov, Vice President of Marketing and Business Solutions told The Jerusalem Post.

In December 2005, FTS acquired US-based Viziqor Solutions, a privately held provider of billing and business support solutions to establish itself as a leading provider in the North American market.

"Over the past 18 months, we have taken significant steps to position ourselves in the US, Africa, Europe and Asia to complete our global expansion," Sakov said. "We will now focus on developing recent acquisitions and joint ventures."

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