Sydney-based Spike CyberWorks is focusing on an aggressive push into Asia following an injection of AU$10 million by venture capital provider techpacific.com.
Hong Kong-based techpacific will buy out Pacific Century CyberWorks' (PCCW) 30 percent stake in the digital services company. It will involve PCCW acquiring AU$10.5 million worth of ordinary shares in techpacific at HK$0.40 cents per share.
The AU$10 million cash investment will buy techpacific an additional 21 percent share in Spike - giving it a 51 percent controlling stake in the company.
techpacific also has the option to expand its stake in Spike by 15.67 percent over the next couple of years.
"It's good for us that they've indicated their interest in continuing to go with us and grow with us," Spike Cyberworks CEO John Craven told ZDNet.
"Continued investment backing in digital companies means that it's not all doom and gloom out there. Everyone seems to be leaving town lately, this could be a different twist on things."
Spike culled 15 percent of its workforce at the end of 2000 in a major downsizing that saw the company refocus its operations.
"We've got back on the track of building again," Craven said.
With AU$30 million in turnover, Spike needs a good capital base to expand into Japan and Hong Kong and continue to grow in the Australian market, according to Craven.
"We've got an extra AU$10 million in the bank now," he said.
"Asia is heading into a relative booming time in the Internet over the next couple of years," he added. "We see this as an opportunity in the making."
"The winners will be well-funded and stable, it'll continue to be a rocky road for the small players," Craven added.
