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Mumbai: IBM has teamed up with Lehman Brothers to pick up a small stake in Chinese software company Kingdee, in a bid to expand in the US firm's presence in the $10 billion market in China. Under the agreement, IBM will help Kingdee design products for the international market, and provide consulting to its clients. In return, IBM will get 3.85 per cent stake in Kingdee for half its worth last week and gain access to China's thriving market, which is now dominated by SAP, Oracle and UFIDA Software - a local company. Kingdee International Software Group Ltd., China's second-largest designer of software, helps run businesses more smoothly. The global alliance will help Kingdee approach the international market while associating IBM in the domestic market. The software market in China is projected to grow at about 10 per cent annually to $48.37 billion by 2010 and account for almost a quarter of Asian IT spending excluding Japan, according to IT consultancy IDC. IBM and Lehman agreed to pay HK$132 million (US$16.9 million for 7.7 per cent of Kingdee, valuing the stock at HK$3.7885 per share. IBM and the Chinese firm would begin cooperating on sales within China initially, before expanding their cooperation further. Kingdee, which software major SAP regards as its closest competitor within China, hopes to expand into markets outside like Southeast Asia and other overseas markets such as India or the Middle East. Shenzhen-based Kingdee expects to nearly double overseas revenue annually over the next four years.
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