Oceanwide, IDG Capital complete purchase of International Data Group

The deal, announced in January, split the IDG portfolio in two: Oceanwide would take a controlling interest in operating assets, covering technology-related media, data, and marketing services; and IDG Capital would assume ownership of IDG Ventures, a global network of venture capital funds – including IDG Capital itself – that have IDG as one of multiple LPs. The transaction size has not been disclosed, although previous reports put the valuation at $500 million to $1 billion.

The IDG Ventures portion of the deal was completed in February. It has emerged that Oceanwide and China Everbright participated alongside IDG Capital in a minority capacity. IDG Capital and China Everbright already have a working relationship, last year launching a joint fund that focuses on M&A and restructuring opportunities.

The operating businesses comprise IDG Communications, owner of brands such as CIO, Computerworld, PCWorld and Macworld and related marketing services, and International Data Corporation (IDC), a provider of market intelligence, advisory services and events for the IT, telecom and consumer technology partners, with more than 1,100 analysts worldwide. Oceanwide said it will back IDG's expansion, providing the management team with autonomy, financial support and commercial resources.

Oceanwide was founded in 1985 by Zhiqiang Lu. Its assets encompass financial services, real estate, media and technology. It is a significant investor in China Minsheng Bank and has controlling interests in several Shenzhen or Hong Kong-listed assets and private assets, including several Minsheng-related entities.

“We see great possibilities ahead as China Oceanwide will invest in IDG's business to drive growth across all three of IDG's valuable assets - IDC, IDG Communications and the IDG Ventures portfolios," said Walter Boyd, former chairman of IDG, in a statement. "We believe China Oceanwide will provide the right financial, strategic and cultural resources to take IDG to greater heights."

The IDG Ventures network was established in the 1990s and now covers the US, China, India, Vietnam and Korea. It has more than $3 billion under management. China venture investments began in 1993 led by Hugo Shong. In 2005, IDG Capital and Accel Partners launched a series of China funds. In 2009, the firm changed its name from IDG Ventures China to IDG Capital Partners to reflect its focus on growth as well as VC deals. It subsequently became IDG Capital.

The most recent venture fund closed at $586 million in 2014, while the latest growth fund, raised in conjunction with Breyer Capital, closed at $1 billion in 2016. IDG Capital manages 10 funds in total, covering US dollars and renminbi.

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• Topics
• Greater China
• North America
• Buyouts
• Media
• China
• USA
• M&A
• China Everbright
• IDG Capital Partners