US-based IT media and data firm International Data Group (IDG) has been acquired by diversified conglomerate China Oceanwide and IDG Capital, the corporate’s own China-based VC affiliate.
The deal, first announced in January 2017, means IDG Capital now holds a 10% stake of IDG and has taken control of IDG Ventures, the group’s corporate venturing division.
IDG Capital was launched in 1993 as a US-based, China-focused venture capital firm backed by IDG before moving its headquarters into the People’s Republic and making a series of profitable early-stage investments in businesses such as internet company Baidu and smartphone maker Xiaomi.
IDG Ventures served as the US-focused vehicle for IDG’s investment activities, though it later spread out into India, Vietnam and Korea. IDG held significant stakes in each of these branches and those shares have now been bought by IDG Capital.
China Oceanwide has purchased the remaining 90% of IDG, including financial data analytics subsidiary International Data Corporations and media and events subsidiary IDG Communications.
Founded in 1964, IDG became one of the first US-based IT businesses to enter the Chinese market through a local version of its Computerworld magazine in 1980. The company now operates in 97 countries and regions.
The acquisition follows the naming of a new board of directors for IDG, with Zhiqiang Lu, chairman of China Oceanwide, appointed as chairman and Brett Bing Liu, director and vice-president of China Oceanwide, named president, director and executive committee chair of IDG.
Zhiqiang Lu said: “IDG’s strong global brand and profile make for an attractive strategic investment for us.
“We plan to support IDG’s current management team as they implement their business plans, providing them with the autonomy, financial support and commercial resources that can support IDG’s growth and expansion and further enhance its leading position in the market.”