China Oceanwide and IDG Capital announce agreement to acquire IDG
Upon closure of the transaction, China Oceanwide will become the controlling shareholder of IDG’s operating businesses, including IDC and IDG Communications, while IDG Capital will become the controlling shareholder of the IDG venture business. The terms of the deal were not disclosed. The transaction is expected to close within the first quarter of 2017.
IDG, which operates in 97 countries around the world, will continue to be headquartered in Boston, Massachusetts and managed by its current team. Kirk Campbell will continue as president and CEO of IDC, and Michael Friedenberg will continue as CEO of IDG Communications. A new board of directors will be appointed after the close of the transaction.
“In an effort to carry on the legacy of late founder and chairman Pat McGovern, we have been focused on determining the optimal future balance between what’s best for IDG and Pat’s mission for the McGovern Foundation,” said Walter Boyd, chairman of IDG. “We believe China Oceanwide and IDG Capital will provide the right financial, strategic and cultural fit to take IDG to greater heights.”
“Pat made 130 trips to China over his career, and together with longstanding IDG executive Hugo Shong they established IDG’s media, market research and venture capital businesses in China,” continued Boyd. “We are happy to announce, and I believe Pat would be delighted to know, that China Oceanwide and IDG Capital are willing partners who will continue to invest in IDG’s business and drive growth across all three of IDG’s diverse and valuable assets – IDC, IDG Communications and the IDG Ventures portfolios.”
“IDG is a natural extension for China Oceanwide’s international portfolio expansion,” said chairman Zhiqiang Lu of China Oceanwide. “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. We plan to support IDG’s current management team as they implement their business plans, providing them with the autonomy, financial support and commercial resources that can support IDG’s growth and expansion and further enhance its leading position in the market.”
“Pat was not only a great boss, but also a mentor to me for over 22 years,” said Hugo Shong, founding general partner of IDG Capital. “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.”
IDG’s founder and leader, Patrick J. McGovern, passed away March 2014. His legacy and philanthropic vision will continue with the McGovern Foundation, a new foundation that will be funded by the proceeds from this transaction. This foundation will support neuroscience and IT for the benefit of humanity.
Source: IDG
IDG is a member of FIPP.
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