China-based internet company Tencent has bought a 15.68% stake in Hong Kong-listed software company Kingsoft for HK$892m ($114.4m) and also invested in Kingsoft’s internet security software business with an undisclosed sum.
Ma Huateng, chairman and chief executive of Tencent, said: "We are pleased to form strategic partnerships with Kingsoft. The strategic investment is a testament to our commitment to building a healthy and safe environment for the internet industry in China."
Ma added: "Leveraging on its 14 years of security technology and operational expertise, Kingsoft Internet Security Software possesses advanced anti-virus technologies and experts. We believe the technologies and businesses of Kingsoft and Tencent are highly complementary. The strategic partnership can combine our security technologies and operational strengths in the internet industry, bringing the Chinese internet users more trustworthy internet security services and safer online experiences."
Kingsoft raised HK$649.1m in an initial public offering in 2007. The company produces different types of software for the office, internet security, translation and games.
In June, Tencent said it would double the size of its corporate venturing Industrial Collaboration fund to RMB10bn ($1.5bn).