China Oceanwide Holdings Group and International Data Group (IDG) Capital announced Thursday that they have entered into a definitive agreement to buy IDG Inc., a leading global media, market research and venture company.
Upon closure of the transaction, China Oceanwide will become the controlling shareholder of IDG's operating businesses, including International Data Corporation ("IDC") and IDG Communications, while IDG Capital will become the controlling shareholder of the IDG venture business.
China Oceanwide and IDG Capital have received clearance from the Committee on Foreign Investment in the United States ("CFIUS") for the transaction, which is expected to close within the first quarter of 2017.
"We believe China Oceanwide and IDG Capital will provide the right financial, strategic and cultural fit to take IDG to greater heights," said Walter Boyd, Chairman of IDG.
IDG will continue to be headquartered in Boston, Massachusetts and managed by its current team.
"As a world leader in market research and insights, a publisher of many of the tech industry's most established media brands, and a successful venture investor, IDG's strong global brand and profile make for an attractive strategic investment for us," said Chairman Zhiqiang Lu of China Oceanwide.
IDG's venture arm has invested in some influential technology vendors and buyers.
"We plan to support IDG's current management team as they implement their business plans, providing them with autonomy, financial support and commercial resources that can support IDG's growth and expansion and further enhance its leading position in the market," Lu added.
However, the terms of the deal were not disclosed.
Reuters previously reported that IDG had been in advanced talks to sell itself to a Chinese buyout group and was seeking between 500 million U.S. dollars and 1 billion dollars.
IDG Capital is an independently operated investment management partnership, with IDG as one of many limited partners.
Formed in 1993 as China's first technology venture investment firm, IDG Capital was ranked China's top VC firm for 2016 by Zero2IPO Group.
China Oceanwide is a privately held, multi-billion dollar international conglomerate founded by Chairman Zhiqiang Lu.
Headquartered in Beijing, China Oceanwide's well-established and diversified businesses include operations in financial services, real estate assets, media, technology and strategic investment, with more than 12,000 employees globally.