Baidu Hong Kong, a subsidiary of China-based web portal Baidu, has agreed to acquire China-based mobile app platform and marketplace 91 Wireless for $1.9bn.
Investors granted an exit through the acquisition include online game developer NetDragon, which owned 57.4% of the company, and which will secure a return of more than $1bn from the deal.
Other investors in 91 Wireless included IDG Capital Partners, the China-based corporate venturing subsidiary of publishing and data company IDG, ID Tech Ventures, the investment unit for financial group ID SoftCapital, and Vertex Venture Holdings, which acts as a subsidiary of Singaporean state-backed fund Temasek.
All three contributed to a $30m venture round raised by 91 Wireless in 2011.
91 Wireless is one of the largest mobile app marketplaces and mobile game operators in China. Last month, combined downloads from its marketplace and Baidu’s reached a daily average of 69 million.
Robin Li, chairman and chief executive officer of Baidu said: “The acquisition of 91 Wireless significantly strengthens our mobile app distribution capability, and further enhances Baidu’s prime position in China’s thriving mobile ecosystem.
“This acquisition reinforces Baidu’s commitment to growing and fostering the developer community, establishes Baidu’s position in the flourishing mobile game segment, and offers Baidu another strong channel to deliver its market-leading app offerings.”