AVCJ

VC-backed Xunlei to buy storage business from Kingsoft

  • LinkedIn  
  • Google plus  
  • Save this article  

Xunlei, a Chinese file-sharing service backed by a string of VC firms, will pay $33 million to acquire a personal storage business unit owned by Kingsoft Corporation.

According to a filing, the business - known as Kuaipan Personal - will be absorbed into Xunlei's onshore subsidiary Shenzhen Xunlei Network Technology.

Xunlei raised $88 million in an US IPO in June. Xiaomi Ventures, an investment arm of Chinese mobile phone maker Xiaomi, and King Venture Holdings, a subsidiary of Kingsoft, are both substantial investors. IDG Capital Partners, Morningside Technologies and Primavera Capital also hold interests in the business.

The Kuaipan deal will "further cement Xunlei's access to the mobile ecosystem of Xiaomi and its users, and optimize the monetization potential of our effort towards an efficient use of idle bandwidth and storage," Sean Zou, Xunlei's chairman and CEO, said in a statement.

Its most popular - and free - product is Xunlei Accelerator, a peer-to-peer software tool with approximately 142 million monthly users as of March 2014 and a market share of 81.4%. The company also offers cloud acceleration subscription services, an online video streaming platform, pay-per-view media services and online games.

The transaction is expected to be closed before the end of this month.

  • LinkedIn  
  • Google plus  
  • Save this article  

More on Greater China

Latest News

world-hands-globe-climate-esg
Asian GPs slow implementation of ESG policies - survey

Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...

  • GPs