IDG and IDC sold to Chines Venture Firms

China Oceanwide Holdings Group and IDG Capital announced that they have entered into a definitive agreement to acquire International Data Group, including its subsidiaries International Data Corporation (IDC), IDG Communications, and IDG Ventures, and that they have received clearance from the Committee on Foreign Investment in the United States for the transaction.

Goldman, Sachs & Co. acted as financial advisor, and Foley Hoag LLP and Akin Gump Strauss Hauer & Feld LLP acted as legal advisors to IDG. Citigroup acted as financial advisor, and Ropes & Gray LLP and Covington & Burling LLP acted as legal advisors to China Oceanwide. Davis Polk & Wardwell LLP acted as legal advisor to IDG Capital.

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 transaction is expected to close within the first quarter of 2017.

IDG is the leading global media, market research and venture company that engages the most influential technology vendors and buyers. IDG operates in 97 countries around the world.

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.

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.

IDG 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.“