US-based IT media and data firm International Data Group (IDG) agreed yesterday to an acquisition by conglomerate China Oceanwide and IDG Capital, its own China-based venture capital affiliate.
IDG Capital will take control of IDG’s corporate venturing business through the deal while China Oceanwide will be the controlling shareholder in the firm’s financial data analysis subsidiary IDC and IDG Communications, which oversees IDG’s media and events activities.
IDG was founded by Pat McGovern in 1964 and gradually built up a large stable of IT media publications, entering the Chinese market in 1980 with the introduction of a local version of its Computerworld magazine. McGovern was chairman of the company before his death in 2014.
Known until recently as IDG Capital Partners, IDG Capital was formed in 1993 as a US-based, China-focused VC firm and was sponsored by IDG.
IDG Capital latterly moved into China full-time and made a series of lucrative early-stage investments, most notably in search engine provider Baidu, video streaming platform Youku Tudou, online travel agency Ctrip and smartphone producer Xiaomi.
Meanwhile, IDG itself helped to set up the US-focused IDG Ventures and developed a network of VC affiliates that spanned branches in India, Vietnam and Korea. IDG is a substantial limited partner for each of the firms and it will be that position IDG Capital will assume.
The deal had provisionally been agreed but a formal announcement was made after it was given the go ahead by the US Committee on Foreign Investment in the United States. The deal is set to close by the end of March 2017 and the price Oceanwide and IDG Capital will pay has not been disclosed.
Hugo Shong, founding general partner of IDG Capital, said: “IDG’s culture is at the core of its success, and its strength has always been rooted in the talent and dedication of its people.
“Our focus going forward will be on investing in the company and its people for growth over the long term, as we carry the flag for Pat’s legacy for many years to come.”